sebi:EAD-8/KS/AA/AO/200/2018-19
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Facts / Headnote
Violation established; penalty of Rs. 1,50,000 imposed under Section 15HB
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
Parties
- Advance Lifestyles Limited
Holding
The Noticee failed to comply with the directions issued by the Whole Time Member vide order dated March 22, 2016 by not conducting an audit of the records and systems of Sharepro, and a penalty of Rs. 1,50,000 under Section 15HB of the SEBI Act was imposed.
Full text
Page 2 of 10 cases where violations are observed, in accordance with the provisions of law and inform SEBI accordingly. 12. Companies who are clients of Sharepro are also advised to carry out / switchover their activities related to a registrar to an issue and share transfer agent, either in- house or through another registrar to an issue or share transfer agent registered with SEBI. Sharepro shall provide the requisite cooperation to these companies for the purpose.….”
Page 3 of 10 5. It was observed in the SCN that the Noticee was one of the clients of Sharepro. In terms of above referred directions of Whole Time Member of SEBI, the Noticee was required to conduct a thorough audit of the records and systems of Sharepro within a period of three months from the date of the above referred
Page 4 of 10 (v) The number of transfer transactions of Equity Shares based on and backed up by actual transactions recorded at BSE is / was minimal due to thin trading and lower volume of transactions. (vi) The RTA only received/ receives mostly DMAT request (From Physical to Demat Form) or transmission cases, which are / were dealt by the concerned RTA properly. More than 81 % holding is in DMAT form, in which there are very few chances of any manipulation. (vii) The Number of Complaints at SCORE portal of SEBI or Direct Complaint as received from Members to RTA or the Company is minimal or rather NIL, as could be verified from the Complaint History at the SCORE portal or reports filed by the Company to BSE / SEBI from time to time. (viii) There was no reason, therefore, to doubt the integrity of the management of RTA viz. M/s SHAREPRO Services (I) Private Limited, during our association ship with them; (ix) The Company received information from Listing Department, BSE on 28.03.2016 on the directives from the Whole Time Member of SEBI dated 22.03.2016. The Company has taken immediate steps to shift our Members' data from M/s SHAREPRO Services (I) Private Limited to another SEBI registered RTA; (x) Necessary Steps were taken to identify new RTA, their Financial Quote, their Capabilities, Prestige in Market, Other assignments handled by them and within three months of the SEBI (WTM) Directives, the RTA work was assigned to M/s Bigshare Services Pvt. Limited, w.e.f. from 1st J
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Source: SecMarx — sebi:EAD-8/KS/AA/AO/200/2018-19. 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.