sebi:PB/AO-17/2010
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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
- s. 19I
Regulations
- Reg. 199
- Reg. 54(5)
- Reg. 54
Holding
The Noticee violated Regulation 54(5) of the DP Regulations by failing to dematerialize securities within the stipulated time period, and is liable for a monetary penalty of Rs. 5,00,000 under section 19D of the Depositories Act, 1996.
Full text
Page 2 of 11 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”).
Page 3 of 11 hearing on May 13, 2009 at SEBI, Head Office, Mumbai vide notice dated April 22, 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. The Noticee was granted 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 Noticee replied to the aforesaid hearing notice stating inter-alia that the company is sick and all the premises of factory are sealed since five years. The Noticee submitted that the matter is pending with the Honorable High Court and therefore, they are unable to pay the
Page 4 of 11 CONSIDERATION OF ISSUES AND FINDINGS 8. I have carefully perused the written submission of the Noticee and the documents available on record. The issues that arise for consideration in the present case are :
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Source: SecMarx — sebi:PB/AO-17/2010. 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.