sebi:ORDER/MS/SB/2018-19/330
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Facts / Headnote
Penalty imposed on the noticee for failure to obtain SCORES authentication
Provisions invoked
- s. 15
Parties
- Rajat Steel Industries Ltd.
Holding
The noticee Rajat Steel Industries Ltd. failed to obtain SCORES authentication as required by SEBI circulars, and the dispatch of SCN and notices of hearing to the registered office address as available in the MCA portal constituted valid service under Rule 7(b) of the Rules. A penalty of Rs. 5,00,000/- was imposed under Section 15 HB of the SEBI Act.
Full text
Page 2 of 8 and adjudge under section 15 HB of SEBI Act the alleged violation of cited circulars by the noticee. Pursuant to her transfer, Shri Prasanta Mahapatra was appointed as the AO. Subsequent to his transfer, the undersigned was appointed as the AO vide order dated January 27, 2016.
Page 3 of 8 7. Given the aforesaid, I proceed ahead in the matter on the basis of the material available on records and the issues that arise for consideration in the present case are: a. Whether the noticee has failed to obtain SCORES authentication, thereby failed to comply with the cited SEBI circulars? b. Whether dispatching the SCN and Notices of Hearing as aforesaid to the address of the registered office of the noticee as available in MCA portal, constitute valid service as per the Rules? c. Does the violation, if any, on the part of the noticee attract monetary penalty under Section 15 HB 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 11. Redressal of investor grievances in SCORES is distinct from obtaining authentication; and failure of the former attracts monetary penalty u/s 15 C of SEBI Act, which reads as follows:
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Source: SecMarx — sebi:ORDER/MS/SB/2018-19/330. 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.