sebi:Order/PM/NK/2019-20/3770
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Facts / Headnote
Violation established; penalty of Rs. 1,00,000 imposed under Section 15HB of SEBI Act, 1992
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 28A
Parties
- Kwality Builders & Developers Limited
Holding
The Noticee, Kwality Builders & Developers Limited, failed to obtain SCORES authentication within the time specified despite being called upon to do so and thereby violated SEBI Circular No. CIR/OIAE/1/2013 dated April 17, 2013. The Noticee was held liable under Section 15HB of the SEBI Act, 1992 and a penalty of Rs. 1,00,000 was imposed.
Full text
Page 2 of 9 3. It was therefore, alleged that the Noticee’s failure to obtain SCORES authentication within the time specified by the Board, despite being called upon to do so, makes the Noticee liable for penalty under section 15 HB of SEBI Act, 1992. APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 9 relating to matter was misplaced and the employee handling the said matter went on leave due to medical emergency without informing about the correspondence received from SEBI. Further, it submitted that it had no intention to disregard /violate any of the provisions but the same happened due to ignorance. Further, on becoming aware of the default, they had applied to for the SCORES User Id and Password in accordance with the SEBI Circulars.
Page 4 of 9 10. 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. I note that prior to the issuance of the Circular dated April 17, 2013, SEBI had also issued a Public Notice dated January 13, 2013 listing out the names of some of the listed companies, against whom complaints were pending with SEBI and who had failed to obtain SCORES authentication as per SEBI’s records as on December 31, 2012. SEBI through the said Public Notice too had warned the companies in general and whose names had appeared in the list in particular, that if they failed to obtain SCORES authentication within 7 days from the date of the advertisement, SEBI would be constrained to initiate appropriate enforcement actions.
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Source: SecMarx — sebi:Order/PM/NK/2019-20/3770. 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.