sebi:EAD-2/DSR/VS/900/2018
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Facts / Headnote
Penalty imposed on Noticee for violation of SEBI Circulars
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 15C
Parties
- Valplus Biotech Limited
Holding
The Noticee, Valplus Biotech Limited, violated SEBI Circulars by failing to redress an investor complaint and failing to obtain SCORES authentication, and a monetary penalty of Rs. 1,00,000 was imposed under Section 15HB of the SEBI Act. The allegation of violation under Section 15C was not tenable as the precondition of being called upon in writing by the Board was unfulfilled.
Full text
______________________________________________________________________________________ Page 2 of 7 earlier Circulars / directions. The said Circular dated December 18, 2014 further, inter alia, stated that failure by any listed company to obtain SCORES authentication would not only be deemed as non-redressal of investor grievances, but, also indicate wilful avoidance of the same. The aforementioned SEBI Circulars are hereinafter collectively referred to as the “SEBI Circulars".
______________________________________________________________________________________ Page 3 of 7 Noticee. The said SCN was duly served on Noticee. However, no reply was received from the Noticee.
______________________________________________________________________________________ Page 4 of 7 FINDINGS 8. The first issue for consideration is whether the Noticee has violated the provisions of SEBI Circular No. CIR/OIAE/1/2012 dated August 13, 2012 by failing to redress one investor complaint within the prescribed time. I find from the plain reading of section 15 C which says that, if any listed company or any person who is registered as an intermediary, after having been called upon by the Board in writing, to redress the grievances of investor, fails to redress such grievances within the time specified by the Board, such company or intermediary shall be liable to a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less. I find from the record that the requirement under Section 15C of the SEBI Act, 1992 which states that “… after having been called upon by the Board in writing...” remains unfulfilled. In view of this, the allegation of violation of section 15C of SEBI Act by the Noticee is not tenable.
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Source: SecMarx — sebi:EAD-2/DSR/VS/900/2018. 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.