sebi:ORDER/SBM/KL/2022-23/16885
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Facts / Headnote
Penalty imposed on the Noticee for violations of Clause 23 of General Norms for processing of documents under RRTI Circular no. 1 (2000-2001), Clause 3(e) of Listing Agreement, and Regulation 39(2) r/w Regulation 103(2) of LODR Regulations.
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 108
- s. 84
Regulations
- Reg. 4
- Reg. 199
- Reg. 5
- Reg. 103
- Reg. 39
- Reg. 39(2)
- Reg. 9A(b)
- Reg. 103(2)
Parties
- Eicher Motors Limited
Holding
The Noticee (Eicher Motors Limited) violated Clause 23 of the General Norms for processing of documents under RRTI Circular no. 1 (2000-2001), Clause 3(e) of the Listing Agreement, and Regulation 39(2) r/w Regulation 103(2) of the LODR Regulations by failing to issue newspaper advertisements, inform stock exchanges, and issue duplicate certificates within the prescribed time frame. A monetary penalty of Rs. 10,00,000 was imposed on the Noticee.
Full text
Adjudication order in the matter of Eicher Motors Limited Page 2 of 35 Securities Limited. Accordingly, SEBI conducted specific purpose inspection of the records/documents regarding the processes/procedure followed by MCS while executing the requests from the investors requesting/making the share transfer requests, issue of duplicate shares, dematerialization of shares etc. w.r.t the cases/companies forming part of the EOW investigations. In this regard, it is alleged that out of 22 such requests received by MCS, in 6 instances pertaining to Eicher, neither signature records were available with MCS nor any advertisement was issued in any widely circulated newspaper before the issuance/processing of such duplicate share certificate requests as required under the provisions of Clause 23 of General Norms for processing of documents under RRTI Circular no. 1 (2000-2001) dated May 09, 2001 by Eicher.
Adjudication order in the matter of Eicher Motors Limited Page 3 of 35 Listing Agreement (hereinafter referred to as ‘Listing Agreement’), Regulation 39 (2) of SEBI (Listing Obligations and Disclosure Requirements), 2015 (hereinafter referred to as ‘LODR Regulations’) r/w Regulation 103 (2) of the LODR Regulations.
Adjudication order in the matter of Eicher Motors Limited Page 4 of 35 above, it is alleged that the Noticee failed to conduct due diligence while processing the aforesaid issuance of duplicate shares and hence violated the provisions of Clause 23 of the General Norms for processing of documents under RRTI Circular no. 1 (2000-2001) dated May 09, 2001. It is further alleged that Noticee has also failed to follow the procedures mentioned in the erstwhile Listing Agreement and the LODR Regulations, as aforesaid.
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Source: SecMarx — sebi:ORDER/SBM/KL/2022-23/16885. 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.