sebi:Order/KS/VC/2019-20/5020
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation found; penalty of Rs. 1,00,000 imposed under Section 15HB
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Parties
- Florance Engineering Enterprises Ltd
- Florance Engineering Enterprises LLP
Holding
The Noticee, being listed on CSE and UPSE at the relevant time, violated SEBI circular No. CIR/OIAE/1/2013 dated April 17, 2013 by failing to obtain SCORES user ID and password. A penalty of Rs. 1,00,000 under Section 15HB of the SEBI Act was imposed, payable by Florance Engineering Enterprises LLP.
Full text
Page 2 of 11 authentication. In view of the same, it was alleged that the Noticee violated SEBI circular no. CIR/OIAE/1/2013 dated April 17, 2013 thus, making the Noticee liable for imposition of penalty under Section 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "SEBI Act"). APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 11 several years. Further, the Noticee is doing no business and is converted into an LLP on January 05, 2017. 6. Thereafter, vide letter dated January 11, 2018, the Noticee submitted its detailed reply to the SCN wherein it made the following submissions: a. Seven individuals incorporated Florance Engineering Enterprises Limited ('the Company'), on 20.4.1983 with CIN U31103WB1983PLC036213. b. The Company was acquired as a trading company in the year 1994, to form a part of the family business run by brothers Mr. Parmeshwar Agarwal, Mr. Parmanand Agarwal and Mr. Radha Krishan Agarwal. c. However, Mr. Parmeshwar Agarwal was wholly in-charge of the management of the day- to-day affairs of the family business and compliances. Mr. Parmeshwar Agarwal resigned from the Company on 21.06.2006. d. In 2007, a family dispute lead to distribution of the family business and its assets as per the memoranda of understanding dated April 24, 2007, as a result of which the Company was transferred in the name of Mr. Parmanand Agarwal. e. The Company has not been in receipt of any communication from the Securities and Exchange Board of India or Calcutta Stock Exchange for violation of any norm from the time Mr. Parmanand Agarwal became in-charge of the management of the Company. The Company was always shown as an unlisted entity (as evident from its CIN) in the records of the Registrar of Companies, Kolkata, West Bengal (Registrar). Therefore, the extant management/ Directors were not a
Page 4 of 11 held company. Therefore, the Company which has now been converted into an LLP is not required to obtain registration under SCORES.
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.
Source: SecMarx — sebi:Order/KS/VC/2019-20/5020. 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.