sebi:Order/BS/KH/2024-25/30558

SEBI · SEBI · 2024-03-04 · Bijyu S, Adjudicating Officer

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Facts / Headnote

Violation established; monetary penalty of INR 1,00,000 imposed under Section 15HB of the SEBI Act, 1992

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15I
• s. 15J
• s. 28A

Regulations

• Reg. 4(1)
• Reg. 4(1)(g)
• Reg. 15J

Parties

• Norben Tea & Exports Ltd (PAN-AACN9786H)

Holding

The Noticee was found in violation of SEBI Circular CIR/CFD/CMD1/114/2019 dated October 18, 2019 read with Regulation 4(1)(g) of SEBI (LODR) Regulations, 2015 for failing to ensure the outgoing auditor issued the limited review report for the September 2023 quarter before resignation and for not incorporating the circular's conditions in the terms of appointment of statutory auditors. A monetary penalty of INR 1,00,000 was imposed under Section 15HB of the SEBI Act, 1992.

Full text

Adjudication order In the matter of Norben Tea & Exports Ltd Page 2 of 15 APPOINTMENT OF ADJUDICATING OFFICER 2. The undersigned was appointed as the Adjudicating Officer under Section 19 of SEBI Act read with Section 15I of SEBI Act and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties), 1995 (hereinafter referred to as “Rules”) vide communique dated March 4, 2024 to inquire into and adjudge under section 15HB of the SEBI Act, 1992, the violations alleged to have been committed by the Noticee.

Adjudication order In the matter of Norben Tea & Exports Ltd Page 3 of 15 resignation, issue the limited review/ audit report for such quarter as well as for the next quarter i.e. September 2023. d. It is alleged that, as M/s L.K. Bohania & Co did not issue the limited review/ audit report for the quarter ended September 2023, the same is in non-compliance with SEBI Circular CIR/CFD/CMD1/114/2019 dated October 18, 2019. The Circular requires every listed entity to ensure that the conditions as mentioned in the clause at Para 6(A) and 6(B) of the Circular are included in the terms of appointment of the statutory auditor at the time of appointing/re-appointing the auditor. e. However, it is noticed from the terms of appointment obtained from the Noticee with respect to M/s L.K. Bohania & Co and M/s P D Rungta & Co that such clauses/ conditions of the SEBI Circular have not been incorporated by the Noticee. f. In view of the foregoing, it is alleged that the Noticee had violated the SEBI Circular CIR/CFD/CMD1/114/2019 dated October 18, 2019 read with Regulation 4(1)(g) of SEBI (LODR) Regulations, 2015 by: i) Failing to ensure that that the outgoing auditor M/s L.K. Bohania & Co, before such resignation, issue the limited review/ audit report for June 2023 quarter as well as the next quarter i.e. September 2023

Adjudication order In the matter of Norben Tea & Exports Ltd Page 4 of 15 They have resigned w.e.f. September 25, 2023 i.e. before the end of second quarter September 30, 2023. The Compliance of Para 6 (A) (i), (ii) and (iii) is as under:

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