sebi:PB/AO-16/2010
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Facts / Headnote
Penalty imposed on Noticee for violation of Regulation 54(5) of DP Regulations
Provisions invoked
- s. 19
- s. 12
- s. 19D
- s. 19H
Regulations
- Reg. 199
- Reg. 54(5)
- Reg. 54
Holding
The Noticee violated Regulation 54(5) of the DP Regulations by failing to complete dematerialization of securities within the stipulated time period, and a monetary penalty of Rs. 10,00,000/- was imposed under section 19D of the Depositories Act.
Full text
Page 2 of 11 2. The aforesaid delay is alleged to be in violation of regulation 54 (5) of SEBI (Depositories and Participants) Regulations 1996, (hereinafter referred as “DP Regulations") and liable for penalty under section 19D of the Depositories Act, 1996 (hereinafter referred to as the "Depositories Act"). APPOINTMENT OF ADJUDICATING OFFICER 3. Mr. V. S. Sundaresan was appointed as Adjudicating Officer under section 19H of Depositories Act read with rule 3 of Depositories (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2005 (hereinafter referred to as "Rules") vide order dated March 11, 2008 to inquire into and adjudge the alleged violation of Regulation 54 (5) of DP Regulations. Consequent to the transfer of Mr. V.S Sundaresan, I have been appointed as the Adjudicating Officer vide
Page 3 of 11 acknowledgement received from the Noticee. The Noticee neither appeared nor sought adjournment for the hearing. The Noticee was granted a second opportunity of personal hearing on June 11, 2009 at SEBI, Head Office, Mumbai vide notice dated May 18, 2009 by then Adjudicating Officer. I find from the records that the Notice was received and acknowledged by the Noticee as per the acknowledgement received from the Noticee. The Noticee neither appeared nor sought adjournment for the hearing.
Page 4 of 11 a) Whether the Noticee had violated Regulation 54 (5) of DP Regulations? b) Does the violation, if any, on the part of the Noticee attract monetary penalty under section 19D of the Depositories Act? c) If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in section 19 I of the Depositories Act?
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Source: SecMarx — sebi:PB/AO-16/2010. 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.