sebi:EAD-12/AO/SM/132/2017
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty of Rs. 1,00,000 imposed under Section 15HB; proceedings under Section 15C dropped
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15C
Parties
- M/s Stellar Drugs Ltd
Holding
The Noticee violated SEBI Circular dated August 13, 2012 by failing to obtain SCORES authentication, attracting a penalty of Rs. 1,00,000 under Section 15HB of the SEBI Act. However, no penalty was imposed under Section 15C because the statutory precondition of being 'called upon by the Board in writing' to redress grievances was not fulfilled.
Full text
In the matter of M/s Stellar Drugs Ltd Page 2 of 7 and Rule 3 of SEBI (Procedure of Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Rules’) to inquire into and adjudge under Section 15C and 15HB of SEBI Act for the alleged violations Pursuant to his transfer, Shri S.V. Krishnamohan was appointed as the Adjudicating Officer vide Order dated December 14, 2016. Subsequent to the transfer of case, the undersigned was appointed as Adjudicating Officer vide
In the matter of M/s Stellar Drugs Ltd Page 3 of 7 9. In view of the above, I am of the opinion that the SCN has been duly served upon the Noticee in terms of AO Rules , but the Noticee failed to reply and also failed to avail the opportunity of personal hearing. The principle and natural justice has been followed in the matter, as enough opportunities were provided to the Noticee to reply to the SCN and to appear for hearing. As such I am inclined to decide the matter ex-parte taking into account the evidence/material available on record.
In the matter of M/s Stellar Drugs Ltd Page 4 of 7 13. Nothing is produced before me which indicates that Noticeewas called upon by the Board (as it has not taken SCORES Authentication) informing about pending investor complaints.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:EAD-12/AO/SM/132/2017. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.