sebi:Order/SR/SM/2019-20/3774/98

SEBI · SEBI · 2014-03-10 · Sangeeta Rathod, Adjudicating Officer

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Facts / Headnote

Violation established; penalty of Rs. 1,00,000 imposed under Section 15HB of the SEBI Act, 1992

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 28A

Regulations

• Reg. 6

Parties

• Marson S Textiles Ltd

Holding

The Noticee violated SEBI Circular dated April 17, 2013 by failing to obtain SCORES authentication within the stipulated time, and is liable for monetary penalty under Section 15HB of the SEBI Act, 1992. A penalty of Rs. 1,00,000 was imposed on Marson S Textiles Ltd.

Full text

Adjudication Order in respect of Marson S Textiles Ltd for failure to obtain SCORES Authentication Page 2 of 11 1992). The Regional Office of SEBI initiated adjudication proceedings against the Noticee for not obtaining User ID and Password in SCORES vide note dated March 10, 2014 and the same was approved by the competent authority on April 10, 2014.

Adjudication Order in respect of Marson S Textiles Ltd for failure to obtain SCORES Authentication Page 3 of 11 23, 2018 vide hearing notice dated December 28, 2017. The said hearing notice was delivered to the Noticee as seen from record. On the scheduled date of hearing i. e. January 23, 2018, the authorised representatives (ARs) on behalf of the Noticee attended the hearing and requested additional time to provide additional information. Hearing minutes are on record. Noticee vide its letter dated January 30, 2018 submitted the additional information. Upon the receipt of the instant matter, I granted an opportunity of hearing on July 23, 2019 vide hearing Notice dated July 08, 2019 and the same was delivered to the Noticee as seen from record. The AR attended the hearing on the scheduled hearing and reiterated the submissions made by the Noticee. During the proceedings of hearing, the AR informed that Noticee is on dissemination Board with regard to the listing status on Calcutta Stock Exchange (CSE). Hearing minutes are on record. On the same day i.e. July 23, 2019 the AR submitted an e-mail reply that Noticee is not in the dissemination board. In this regard, Noticee was advised to ascertain that Whether at the time of issuance of SCN, Noticee was a listed company or was on a dissemination board? and to provide the date of shifting of Noticee to dissemination board of BSE or NSE. Noticee vide e-mail dated July 27, 2019 submitted additional information.

Adjudication Order in respect of Marson S Textiles Ltd for failure to obtain SCORES Authentication Page 4 of 11 not applicable to the company and that’s why the application for SCORES ID and password have not been made. MSE has already been allowed to exit vide SEBI order dated May 14, 2015 and with derecognition of MSE, Noticee ceased to be a listed company on that exchange. ASE has already applied to SEBI for derecognition of the exchange. Noticee have also already applied to ASE & MSE to delist its company from that exchange, a copy of the acknowledgement is provided. Noticee also applied to CSE to delist from the exchange, since the matter is quite old, the documents are not traceable by the Noticee. Further, as on date of the issuance of the above circulars, we are not listed on any stock exchange having electronic trading with nationwide coverage. b) Noticee mentioned that Para 3.2 of the exit circular of SEBI wherein inter-alia it is stated that “The exclusively listed companies, which fail to obtain listing on any other stock exchange, will cease to be a listed company and will be moved to the dissemination board by the exiting stock exchange. Therefore, in the interest of investors of exclusively listed companies, a mechanism of dissemination board will be set-up by stock exchange having nationwide trading terminals” (emphasis supplied). Therefore, Noticee submitted that it is SEBI’ s own case that since we have failed to obtain listing on any other stock exchange, w

Source: SecMarx — sebi:Order/SR/SM/2019-20/3774/98. 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.