sebi:Order/GR/RK/2020-21/10478

SEBI · SEBI · 2019-06-12 · G Ramar, Adjudicating Officer

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Facts / Headnote

Penalty imposed on the Noticee

Provisions invoked

• s. 11B
• s. 11
• s. 15A
• s. 15
• s. 19
• s. 15J
• s. 15F
• s. 28A
• s. 15C

Parties

• Sarang Chemicals Limited

Holding

The Noticee, Sarang Chemicals Limited, was held liable for failing to redress investor grievances within the prescribed timeline and for failing to submit the Action Taken Report (ATR), attracting penalties under Section 15A(a) and Section 15C of the SEBI Act. A total penalty of Rs. 2,00,000/- was imposed.

Full text

Adjudication Order in respect of Sarang Chemicals Limited Page 2 of 10 APPOINTMENT OF ADJUDICATING OFFICER 3. The undersigned was appointed as the Adjudicating Officer (‘AO’) vide order dated June 12, 2019, under Section 19 read with Section 15-I of Securities and Exchange Board of India, 1992 (hereinafter, “SEBI Act”) and under Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter, Rules) to enquire into and adjudge under Section 15A(a) and Section 15C of the SEBI Act, for the aforementioned alleged violations by the Noticee. Earlier, the case was assigned to Shri Sudeep Mishra, Shri Achal Singh and Shri Anindhya Kumar Das. I therefore proceed in the matter from where it had been left by the previous Adjudicating Officer.

Adjudication Order in respect of Sarang Chemicals Limited Page 3 of 10 be available at their registered office and receive all notices addressed to this address and 2) make appropriate filing to the Registrar of Companies (‘hereinafter, RoC’) / MCA portal, in case of change in this address. However, it is noted that as per the MCA website, that no change in address was intimated by the Noticee. Thereafter, attempt was made to serve the Notices to the Noticee through publication. Hence, vide publication dated January 14, 2021 in national and vernacular dailies, the Noticee was advised to collect the copy of the SCN from the office of AO or to download it from SEBI website. Further, an opportunity of personal hearing was granted to the Noticee on February 15, 2021 vide the same publication. It was inter alia mentioned in the said notice that if the Noticee failed to appear before the Adjudicating officer on the said date and time, then the matter shall be proceeded with on the basis of the material available on record. Despite the same, no response has been received from the Noticee till date.

Adjudication Order in respect of Sarang Chemicals Limited Page 4 of 10 8. Further, the same position is reiterated by the Hon’ble SAT in the matter of Dave Harihar Kirtibhai Vs SEBI (Appeal No. 181 of 214 dated December 19, 2014), wherein the Hon’ble SAT observed as under: “...further, it is being increasingly observed by the Tribunal that many persons/entities do not appear before SEBI (Respondent) to submit reply to SCN or, even worse, do not accept notices/letters of Respondent and when orders are passed ex-parte by Respondent, appear before Tribunal in appeal and claim non-receipt of notice and do not appear and/or submit reply to SCN but claim violation of principles of natural justice due to not being provided opportunity to reply to SCN or not provided personal hearing. This leads to unnecessary and avoidable loss of time and resources on part of all concerned and should be eschewed, to say the least. Hence, this case is being decided on basis of material before this Tribunal...”

Source: SecMarx — sebi:Order/GR/RK/2020-21/10478. 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.