sebi:OIAE/EAD-3/AO/DRK-ASR/726/51-2015
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Facts / Headnote
Adjudication proceeding disposed of without penalty
Provisions invoked
- s. 24
- s. 15C
Parties
- Fomento Resorts & Hotels Limited
Holding
The alleged violation of Section 15C of the SEBI Act, 1992 against Fomento Resorts & Hotels Limited was difficult to establish and accordingly the adjudication proceeding was disposed of without penalty.
Full text
Page 2 of 8 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING: 3. A Show Cause Notice No. A&E/EAD-3/DRK-VVK/18963/2013 dated July 30, 2013 (hereinafter referred to as “SCN”) was served on the Noticee on August 06, 2013 through Registered Post Acknowledgment Due (hereinafter referred to as “RPAD”) under Rule 4 (1) of the Adjudication Rules, to show cause as to why an inquiry should not be held against the Noticee and why penalty, if any, should not be imposed on the Noticee under Section 15C of the SEBI Act, for the alleged violation of non redressal of an investor grievance. The aforesaid complaint was filed by Shri Dilip Samarth (hereinafter referred to as “Dilip/ complainant”) with SEBI on October 4, 2010 alleging that he has not received dividend announced by the Noticee and the Noticee has not opted for depositing shares in DMAT Account. It was further alleged in the aforesaid complaint that vide his letter dated August 13, 2010 he had informed Noticee about his change of address but the same has not been taken on record by the Noticee. The following was alleged in the aforesaid SCN: (a) Vide letter dated January 22, 2013 issued to the Noticee, SEBI had observed that four (4) investor grievances were pending against the Noticee in SCORES. It was also mentioned in the said letter that if the Noticee fails to redress the complaints, SEBI may take action against the Noticee under Section 15C and Section 24 of the SEBI Act.
Page 3 of 8 Penalty for failure to redress investors’ grievances 15C. 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 investors, 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.
Page 4 of 8 (b) The action history appearing on the SEBI SCORES website in respect of the complaint of Dilip shows that the dealing officer of SEBI himself has certified the complaint as ' Case Disposed Of ' after being fully satisfied that the investor grievance has been redressed by the Noticee.
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Source: SecMarx — sebi:OIAE/EAD-3/AO/DRK-ASR/726/51-2015. 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.