sebi:Order/AA/AR/2019-20/6357

SEBI · SEBI · 2013-04-01 · Dr. Anitha Anoop, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Penalty imposed on the Noticee for failure to redress investor grievances and file ATR

Provisions invoked

Parties

Holding

The Noticee, Rajadhiraj Industries Ltd, was held liable for violating Sections 15C and 15A(a) of the SEBI Act by failing to redress investor grievances within the time specified by SEBI and failing to file ATRs, and a penalty of Rs. 2,00,000 was imposed. The Adjudicating Officer also held that the ongoing adjudication proceedings are not hampered by the liquidation of the Noticee.

Full text

Adjudication order in the matter of Non redressal of Investor Grievances Page 2 of 12 of the receipt of the grievance. 2. SEBI also observed that, prima facie, the Noticee had failed to redress fifty three (53) investor complaints within the stipulated time and file ATRs in respect of such pending complaints. In view of the same, SEBI has initiated adjudication proceedings under Sections 15A(a) and 15C of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) against the Noticee.

Adjudication order in the matter of Non redressal of Investor Grievances Page 3 of 12 5. The details in respect of the alleged violation by the Noticee are as given below: a) Vide the aforesaid letter you were directed to resolve all the grievances latest by February 27, 2013. The said letter was served on you and the proof of service is available on record. b) It is observed that you have neither replied to the aforesaid letter dated February 15, 2013 nor you have activated SCORES authentication and submitted the ATR. It is further observed that you did not redress grievances in spite of you being called upon by SEBI in writing to do so. It may be noted that as on May 24, 2013 there are 53 investor grievances pending against you in SCORES for redressal for more than two years (List of investor grievances enclosed as Annexure ‘B’) c) It is further observed that SEBI issued a Public Notice dated January 13, 2013 against the companies which and failed to obtain SCORES authentication, wherein the name of RIL was included. Further, vide circular no. CIR/OIAE/1/2013 dated April 17, 2013, SEBI advised all the companies to obtain SCORES authentication within one month from the date of the said circular. However, as on May 24, 2013 you had not approached SEBI for the authentication. d) The alleged failure to furnish ATR and non-redressal of investor grievances, if proved, makes you liable for penalty under Section 15A(a) and 15C of the SEBI Act, respectively…

Adjudication order in the matter of Non redressal of Investor Grievances Page 4 of 12 observed from the website of Ministry of Corporate Affairs that the Noticee is under liquidation. Therefore, pursuant to my appointment as the Adjudicating Officer in the matter, the said SCN was re-issued to the Noticee along with a hearing notice vide SEBI letter dated December 17, 2019, granting an opportunity of personal hearing to the Noticee. The SCN and the aforesaid hearing notice were delivered through email dated December 18, 2019, to the Official Liquidator-Indore (hereinafter referred to as ‘OL’), who was appointed in respect of the winding up proceedings of the Noticee.

You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.

Free accounts include 10 searches/day with full order access.

Analyse this matter in Ontology · Plans

Source: SecMarx — sebi:Order/AA/AR/2019-20/6357. 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.