sebi:EAD-2/AO/100/2012
Facts / Headnote
Penalty imposed on the Noticee for violations of Sections 15A(a) and 15C of the SEBI Act, 1992
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 15C
Parties
- Noticee (unnamed in text)
Holding
The Noticee violated Sections 15A(a) and 15C of the SEBI Act by failing to redress investor grievances, failing to submit the ATR, and failing to submit authentication under SCORES despite being called upon by SEBI in writing. A total penalty of Rs. 5,00,000 was imposed (Rs. 50,000 under Section 15A(a) and Rs. 4,50,000 under Section 15C).
Full text
Page 2 of 7 investor complaints. The Noticee was also advised to submit a letter from BSE and other stock exchanges on which the shares of the Noticee were listed stating the status of the investor grievances. However, the Noticee did not redress the investor grievances, failed to submit the ATR and submit letters from the stock exchanges. Further, with reference to the SEBI Circular No. CIR/OIAE/2/2011 dated June 03, 2011, SEBI vide letters dated October 11, 2011 and November 22, 2011 advised the Noticee to forward information as required under Point No. 04 of the said circular and also to send the scanned copy / soft copy of the authentication to scores@sebi.gov.in and sebiwro@sebi.gov.in. However, the Noticee failed to comply with the same.
Page 3 of 7 6. The SCN was sent to the Noticee by Registered Post Acknowledgment Due and the same was duly delivered. The Noticee did not reply to the SCN. In the interest of natural justice and in order to conduct an inquiry as per Rule 4 (3) of the Adjudication Rules, the undersigned vide letter dated August 13, 2012 granted an opportunity of personal hearing to the Noticee on August 23, 2012. However, the Noticee did not attend the hearing and vide its letter dated September 26, 2012, informed that as its Managing Director, Shri Pawan Kumar, who is in-charge of all the share transfers and share related complaints was out of the country, another opportunity of hearing may be granted. Accordingly, another opportunity of personal hearing was granted on October 08, 2012. The said hearing was attended by one Mr. Sanjay Kumar Lohia who was the Director of the Noticee and made oral submissions. During the hearing, Mr. Lohia requested for another opportunity of hearing as some of the documents pertaining to investor grievances were under lock and key and the keys were with the managing Director, Mr. Pawan Kumar. The Noticee has, vide its letter dated October 08, also made written submissions. In view of the said request, another opportunity of personal hearing was granted on November 19, 2012. However, the Noticee failed to attend the said hearing.
Page 4 of 7 (b) Does the violation, if any, on the part of the Noticee attract any penalty under Section 15A(a) and 15C of the SEBI Act? (c) If yes, what should be the quantum of penalty?
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Source: SecMarx — sebi:EAD-2/AO/100/2012. 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.