sebi:ORDER/NH/KL/2022-23/18927

SEBI · SEBI · 1994-10-11 · N Hariharan, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticee

Provisions invoked

Regulations

Parties

Holding

The Noticee, CB Management Services Private Limited, was held to have violated securities laws by failing to maintain signature records of shareholders, delaying issuance of duplicate shares beyond the 30-day limit under LODR Regulations, and delaying processing of transmission of shares beyond the 21-day limit. A monetary penalty of Rs. 3,00,000 was imposed under Section 15HB of the SEBI Act.

Full text

Adjudication Order in respect of CB Management Services Private Limited Page 2 of 37 a. maintenance of records b. issuance of duplicate shares c. transmission of shares d. transfer of shares e. processing of dematerialization requests, etc.

Adjudication Order in respect of CB Management Services Private Limited Page 3 of 37 ii. It was observed that during the inspection period, the Noticee had delayed the process of issuance of duplicate shares in 200 instances out of a sample of 234 instances. It is alleged that the Noticee has violated the provisions of clause 8 of Annexure B and point 1 of Schedule 1 of Model agreement between the share transfer agent and the company as specified in RRTI Circular dated October 11, 1994, RRTI Circular no.1 (2000- 2001) dated May 09, 2001, Regulation 39 (2) read with 7(1), 7(2), 40 (2) and 40 (7) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as ‘LODR Regulations’), Regulation 9A (1) (b) and clause 2 & 5 of Code of Conduct prescribed under Regulation 13 of RTA Regulations. iii. It was observed that during the inspection period, the Noticee had delayed the process of transmission of shares in 25 It is alleged that the Noticee has violated the provisions of clause 8 of Annexure B and point 1 of Schedule 1 of Model agreement

Adjudication Order in respect of CB Management Services Private Limited Page 4 of 37 instances out of a sample of 47 instances. between the share transfer agent and the company as specified in RRTI Circular dated October 11, 1994, SEBI circular No. CIR/MIRSD/10/2013 dated October 28, 2013, Regulation 40 (3) read with Regulations 7 (1), 7 (2), 40 (2) and 40 (7) of LODR Regulations, Regulation 9A (1) (b) and clause 2 and 5 of Code of Conduct prescribed under Regulation 13 of RTA Regulations.

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Source: SecMarx — sebi:ORDER/NH/KL/2022-23/18927. 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.