sebi:ORDER/MS/SB/2018-19/1068
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Facts / Headnote
Penalty imposed: Rs. 5,00,000 under Section 15HB and Rs. 7,00,000 under Section 15C of the SEBI Act, totaling Rs. 12,00,000
Provisions invoked
- s. 15
- s. 15H
- s. 15C
Parties
- Eastern Mining & Allied Industries Ltd
Holding
The Adjudicating Officer held that dispatch of the Show Cause Notice and hearing notices by Speed Post with Acknowledgement Due to the noticee's registered office address as available in the MCA portal constitutes valid service under Rule 7(b) of the Rules, and imposed penalties of Rs. 5,00,000 under Section 15HB and Rs. 7,00,000 under Section 15C of the SEBI Act on Eastern Mining & Allied Industries Ltd for failure to obtain SCORES authentication and failure to redress 25 investor grievances.
Full text
Page 2 of 8 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 4. A Show Cause Notice dated September 01, 2017, (hereinafter, SCN) was issued to the noticee under Rule 4 of the Rules, calling it to show cause as to why an inquiry should not be held against it in terms of Rule 4 of the Rules, read with section 15-I of SEBI Act and penalty be not imposed on it under Section 15HB and section 15C of the SEBI Act allegedly not obtaining SCORES authentication and failure to redress the grievances of the investors within the specified timelines, respectively. The SCN was dispatched through Speed Post with Acknowledgement Due (hereinafter, SPAD) to the address of registered office of the noticee as available in the portal of the Ministry of Corporate Affairs (hereinafter, MCA), however the same was returned undelivered with the endorsement “office moved”. A copy of the said SCN was also sent to another address of the noticee available on records, which too was returned undelivered with the endorsement “addressee left without instruction”.
Page 3 of 8 b. Whether the noticee failed to obtain SCORES authentication and also to redress the grievance(s) of investor(s), thereby failed to comply with SEBI circulars dated August 13, 2012 and April 17, 2013? c. Does the violation, if any, on the part of the noticee attract monetary penalty under Section 15 HB and 15 C of the SEBI Act? d. If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in Section 15 J of the SEBI Act?
Page 4 of 8 SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995 (Notification: No. GSR 541(E), dated 10-7-1995) …..
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Source: SecMarx — sebi:ORDER/MS/SB/2018-19/1068. 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.