sebi:Order/MC/VS/2019-20/5702

SEBI · SEBI · 2015-06-22 · Maninder Cheema, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalty imposed on Noticee

Provisions invoked

• s. 11
• s. 15H
• s. 15I
• s. 15J
• s. 15C
• s. 23

Parties

• Vol Plast Ltd.

Holding

The Noticee, Vol Plast Ltd., was held liable for failing to obtain SCORES authentication and failing to file Action Taken Reports within the prescribed timelines, in violation of SEBI Circulars CIR/OIAE/2/2011, CIR/OIAE/1/2012 and CIR/OIAE/1/2013, and a penalty of Rs. 1,00,000 was imposed under Section 15HB of the SEBI Act. The charge of non-redressal of investor grievances was, however, not established.

Full text

Adjudication Order in respect of Vol Plast Ltd. in the matter of Non-redressal of Investor Grievances Page 2 of 11 from Shri Sudeep Mishra to Shri Achal Singh and then to Shri Anindya K Das vide communique dated June 22, 2015.

Adjudication Order in respect of Vol Plast Ltd. in the matter of Non-redressal of Investor Grievances Page 3 of 11 advised to obtain SCORES authentication by September 14, 2012 in terms of the aforesaid circular”. d) Further, as per para. 1 of SEBI Circular No. CIR/OIAE/1/2013 dated April 17, 2013, “Failure to obtain the SCORES user ID and password within 30 days of issue of this circular would not only be deemed as non-redressal of investor grievances but also indicate wilful avoidance of the same.” e) The Noticee failed to provide details for creation of user account on SCORES. f) As on the date of the SCN the Noticee had not provided any Action Taken Reports in respect of 2 investor complaints pending against the Noticee in the SCORES system. g) Based on the aforesaid observations, it was alleged that by failing to obtain SCORES authentication and to redress the 2 pending investor grievances, the Noticee has violated SEBI Circular No. CIR/OIAE/2/2011 dated June 03, 2011, SEBI Circular No. CIR/OIAE/1/2012 dated August 13, 2012 and SEBI Circular No. CIR/OIAE/1/2013 dated April 17, 2013. The alleged violation, if established, make the Noticee liable for monetary penalty under Sections 15C and 15HB of the SEBI Act, 1992.

Adjudication Order in respect of Vol Plast Ltd. in the matter of Non-redressal of Investor Grievances Page 4 of 11 7. Due to lapse of time and in the interest of natural justice, a Hearing Notice No. SEBI/HO/EAD/EAD5/OW/P/2019/0000019291/1 dated July 31, 2019 (“HN”) was issued to the Noticee providing an opportunity of hearing to the Noticee on August 20, 2019 at 3:30 p.m. and enclosing the SCN. The HN was attempted to be served by Speed Post A.D. at the last known registered office address corresponding with the details available on the MCA website. However, the said HN enclosing the SCN was returned undelivered with the comment “Left”. Records of tracking details available at www.indiapost.gov.in indicate that an attempt to deliver the HN and SCN at the premises of the Noticee was made on 07.08.2019 but the same was “Not Delivered” as the addressee had left the premises without instructions. As affixture of the HN as per Rule 7 (c) of the Adjudication Rules also failed, accordingly, as per Rule 7 (d) of the Adjudication Rules, a Public Notice of Hearing dated August 22, 2019 providing an opportunity of hearing on September 18, 2019 at 3:00 p.m. to the Noticee was published in newspapers on August 27, 2019. However, the Noticee did not appear for hearing and no response to the SCN has been received till date.

Source: SecMarx — sebi:Order/MC/VS/2019-20/5702. 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.