sebi:EAD-8/KS/AA/AO/218/2018-19
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Facts / Headnote
Penalty of Rs. 3,00,000 imposed on Crest Animation Studios Limited under Section 15HB of the SEBI Act for non-compliance with WTM order dated March 22, 2016
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
Parties
- Crest Animation Studios Limited
Holding
The Noticee, Crest Animation Studios Limited, failed to comply with the Whole Time Member directions dated March 22, 2016 by not submitting the audit report on Sharepro records/systems and by not shifting RTA operations from Sharepro, and is therefore liable under Section 15HB of the SEBI Act with a penalty of Rs. 3,00,000 imposed.
Full text
Page 2 of 9 paid/transfers effected within the preceding at least 10 years. The audit directed above shall be completed by the companies within a period of three months from the date of this order and thereafter a report shall be submitted to SEBI by the companies in that regard. Further, within a period of six months from the date of this order, the companies shall take appropriate action, in cases where violations are observed, in accordance with the provisions of law and inform SEBI accordingly.
Page 3 of 9 SHOW CAUSE NOTICE, REPLY AND HEARING 4. A Show Cause Notice dated August 07, 2018 (herein after referred to as ‘SCN’) was issued to the Noticee under Rule 4 (1) of the Adjudication Rules to show-cause as to why an inquiry should not be initiated against the Noticee and why penalty should not be imposed upon it under Section 15HB of the SEBI Act for its alleged failure to comply with the directions issued by Whole Time Member of SEBI vide order dated March 22, 2016.
Page 4 of 9 September 14, 2018 was sent via SPAD and digitally signed email to the Noticee granting an opportunity of personal hearing on October 10, 2018. The Noticee was also granted a final opportunity to submit its reply to SCN on or before September 21, 2018 vide the said reminder cum hearing notice. However, the said reminder cum hearing notice returned undelivered and the same could not be affixed at the last known address of the Noticee. In view of the same, a newspaper publication was made on December 04, 2018 intimating the Noticee that it had been granted an opportunity of hearing in the matter on December 19, 2018. In the said newspaper publication, it was also stated that in case the Noticee fails to avail of the hearing opportunity, the matter shall be proceeded further on the basis of material available on record. However, the Noticee failed to avail of the hearing opportunity on December 19, 2018.
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Source: SecMarx — sebi:EAD-8/KS/AA/AO/218/2018-19. 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.