sebi:Order/PM/AB/2019-20/6113

SEBI · SEBI · 2014-04-10 · Prasanta Mahapatra, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Penalty imposed on Noticee under Section 15HB of SEBI Act, 1992

Provisions invoked

Holding

The Noticee failed to obtain SCORES authentication within the time stipulated by SEBI despite being called upon to do so, thereby violating SEBI Circular No. CIR/OIAE/1/2013 dated April 17, 2013, and a penalty of Rs. 1,00,000 was imposed under Section 15HB of the SEBI Act, 1992.

Full text

Page 2 of 8 APPOINTMENT OF ADJUDICATING OFFICER 4. Securities and Exchange Board of India vide order dated April 10, 2014 appointed Mr. Amar Navlani as the Adjudicating Officer, to inquire and adjudge under section 15-I of SEBI Act and rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as "Rules") to enquire into and adjudge under section 15HB of SEBI Act,1992 for failing to obtain the SCORES authentication by the Noticee in spite of being called upon by SEBI to do so. Pursuant to the transfer of Mr. Amar Navlani and reallocation of work, the undersigned was appointed as the Adjudicating Officer vide order dated January 8, 2019. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING

Page 3 of 8 the recognition of the exchange was withdrawn. Further, SEBI had itself consolidated the provisions of SCORES mechanism and brought out a fresh circular on April 17, 2013 and rescinding the earlier circular.

Page 4 of 8 11. The first issue for consideration is whether the Noticee failed to obtain SCORES authentication and thereby violated the provisions of SEBI Circular No. CIR/OIAE/1/2013 dated April 17, 2013. I find from the material available on record that as per SEBI circular no. CIR/OIAE/2/2011 dated June 03. 2011, it was obligatory on the part of all listed companies including the Noticee to obtain SCORES authentication. This was followed by reminder circular no. CIR/OIAE/1/2012 dated August 13, 2012. SEBI again followed with another reminder circular no. CIR/OIAE/1/2013 dated April 17, 2013, pointing out that if SCORES authentication was not obtained within 30 days, it would not only be deemed as non-redressal of investor grievances, but, also indicate wilful avoidance of the same.

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