sebi:Order/AA/MG/2019-20/4637
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Facts / Headnote
Penalty imposed on Noticee
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
- s. 15C
- s. 15I(1)
Parties
- Modern Cement Industries Limited
Holding
The Noticee, Modern Cement Industries Limited, was held to have violated SEBI Circulars CIR/OIAE/2/2011, CIR/OIAE/1/2012 and CIR/OIAE/1/2013 by failing to obtain SCORES authentication, redress investor grievances and file ATR, and a penalty of Rs. 2,00,000 was imposed under Sections 15C and 15HB of the SEBI Act.
Full text
Page 2 of 11 2. SEBI also observed that prima facie the Noticee neither redressed the investor complaints nor did it file any ATR in respect of pending complaints. In view of the same, SEBI has initiated adjudication proceedings under Sections 15C and 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "SEBI Act") against the Noticee.
Page 3 of 11 b) The Noticee has failed to redress the pending investor grievances within time specified by the board and has also failed to file ATR in this regard. c) In view of the above facts and observations it is alleged that Noticee has violated the provisions of the SEBI Circulars No. CIR/OIAE/2/2011 dated June 03, 2011, CIR/OIAE/1/2012 dated August 13, 2012 and CIR/OIAE/1/2013 dated April 17, 2013. The Noticee was advised to file its reply if any, within 15 days of receipt of the SCN.
Page 4 of 11 8. The Noticee vide letter dated February 08, 2016, had submitted that company is delisted from Bombay Stock Exchange (herein after referred to as ‘BSE’) and that the grievances of investors will be redressed in ten days. A copy of the screenshot of the BSE website was also submitted in support of its submission. On perusal of the aforesaid screenshot, it is observed that the Company is suspended due to penal reason and not delisted. Further, the Noticee vide letter dated May 05, 2016 submitted the copies of replies given to the investors in response of their grievances. Thereafter, in view of the change in the AO, the Noticee was granted another opportunity of personal hearing on September 05, 2019 vide hearing notice dated August 13, 2019 in the interest of natural justice. The AR attended the hearing and made the submissions. The AR submitted that the Noticee was delisted from all the stock exchanges around 8-10 years back. The Noticee was granted time till September 17, 2019 to make additional
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Source: SecMarx — sebi:Order/AA/MG/2019-20/4637. 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.