sebi:Order/SBM/PP/2018-19/1629
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Facts / Headnote
Penalty of Rs 2,50,000 imposed on the Noticee under Section 15HA of the SEBI Act; matter proceeded ex-parte
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 173
Regulations
- Reg. 3
Parties
- M/s K R Shah and Associates
Holding
The Adjudicating Officer held M/s K R Shah and Associates liable for violating Sections 12A(a), (b), (c) of the SEBI Act read with Regulations 3(b), (c), (d), 4(2)(f) and 4(2)(r) of the PFUTP Regulations and imposed a penalty of Rs 2,50,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 16 order were, inter alia, restrained from accessing securities market and also prohibited from buying, selling or dealing in the securities market, either directly or indirectly, in any manner whatsoever, till further
Page 3 of 16 3. It was observed during investigations that there were irregularities committed by the Noticee in its capacity as the statutory auditor of the company during the FY 2012-13. It was alleged that there were misrepresentations/false disclosures that were made by the Noticee in the financial statements of the company for the FY 2012-13 and also misrepresentations / wrong disclosures made in the Annual Report of the Company for the FY 2012-13. It was alleged that the Noticee, in its capacity as the statutory auditor of the company during the FY 2012-13 had failed to exercise due diligence and care in this regard.
Page 4 of 16 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 6. Show Cause Notice ref. A&E/EAD-3/SBM/32493/2017 dated December 21, 2017 (hereinafter referred to as ‘SCN’) was issued to the Noticee in terms of Rule 4 of the Adjudication Rules to show cause as to why an inquiry should not be initiated and penalty, if any, be not imposed on the Noticee for the alleged violation of the provisions of sections 12A (a), (b), (c) of the SEBI Act read with Regulations 3 (b), (c), (d), 4(2) (f) and 4 (2) (r) of the PFUTP Regulations by the Noticee.
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Source: SecMarx — sebi:Order/SBM/PP/2018-19/1629. 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.