sebi:Order/PM/NS/2022-23/16490
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Facts / Headnote
Show Cause Notice disposed of without penalty
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 59
Regulations
- Reg. 13
- Reg. 39(4)
Parties
- M/s Link Intime India Pvt. Ltd.
Holding
The Show Cause Notice ref no SEBI/EAD-6/PM/RR/27805/1/2019 dated October 22, 2019 against Link Intime India Pvt. Ltd. is disposed of with no violation established and no penalty imposed under section 15HB of the SEBI Act, 1992.
Full text
Adjudication Order in the matter of M/s Link Intime India Pvt. Ltd. Page 2 of 16 persons informed the Share Transfer Agent (Noticee). The shares were pertaining to Alembic Ltd (AL) and Alembic Pharmaceuticals Ltd (APL).Based on the observations made by the Inspection Team (hereinafter referred to as “Inspection”), it was alleged that Noticee violated Clauses 3 and 25 of the Code of Conduct read with Regulation 13 of the SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 and Clause D(1) of Schedule VI read with Regulation 39(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “LODR Regulations”).
Adjudication Order in the matter of M/s Link Intime India Pvt. Ltd. Page 3 of 16 5. SEBI conducted an inspection of the Noticee on September 27, 2017, October 6, 2017 and October 27, 2017 upon receipt of a complaint of alleged mis- appropriation of shares of long deceased persons. The objective of inspection was to examine suspected cases of transfers of unclaimed shares.
Adjudication Order in the matter of M/s Link Intime India Pvt. Ltd. Page 4 of 16 10. LIIPL did not make any verification of genuineness of attached documents submitted by alleged manipulator. In this regard, Noticee stated that it had relied on the documents received from the Depository Participant as SEBI circulars mandate that a Depository Participant is supposed to do in person verification while opening any demat account and verify all the copies of the documents with the originals. Therefore LIIPL was not required to go into the genuineness of the identity of the claimant when its signatures matched those of Vasant Rao and Laxmi Rao. With respect to this submissions of the Noticee, it may be noted that as per Schedule VI read with Regulation 39(4) of LODR, 2015, listed entity/Share Transfer Agent (STA) should credit the shares lying in unclaimed suspense account after proper verification of the identity of claimant. In view of this, Inspection has stated that LIIPL was required to be more cautious.
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Source: SecMarx — sebi:Order/PM/NS/2022-23/16490. 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.