sebi:PB/AO-41/2010
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Facts / Headnote
Ex-parte monetary penalty imposed
Provisions invoked
- s. 19
- s. 12
- s. 19D
- s. 19H
Regulations
- Reg. 54(5)
- Reg. 54
Holding
The Noticee was held to have violated Regulation 54(5) of the DP Regulations for failure to dematerialize securities within the stipulated time and a monetary penalty of Rs.6,00,000 was imposed under Section 19D of the Depositories Act, 1996.
Full text
Page 2 of 12 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 12 local newspaper “Sandesh” published in Gujarati on April 10, 2010 about the SCN requiring the Noticee or its authorized representative to collect the SCN from the office of Adjudicating Officer. It was also mentioned in the said notification that if the Noticee failed to reply to the SCN within 14 days from the date of publication, it shall be presumed that the Noticee does not have any reply to submit and the matter would be further proceeded ex- parte. The press notification was issued as a substitute service, for the Noticee. The copy of SCN was also uploaded on SEBI website i.e. www.sebi.gov.in. However, I find Noticee neither collected the SCN nor replied to the SCN. One, Mr. Mahendra Kumar C. Panchal a resident of the aforesaid mentioned address of the Noticee had replied vide letter dated April 15, 2010 that the current address of the Noticee as per the website of corporate affairs i.e. www.mca.govi.in is 210, Golden Trade Centre, Station Road Vadodara Gujarat – 390 019 and he had no connection with the Noticee and requested to delete his address from the records.
Page 4 of 12 the Noticee neither appeared on June 16, 2010 nor requested for adjournment of the hearing. 7. In view of the aforesaid steps taken, I am convinced that ample opportunities have been given to the Noticee to explain its case. As per rule 4(7) of the Rules, if any person fails, neglects or refuses to appear as required by sub-rule (3) before the Adjudicating Officer, he may proceed with the inquiry in the absence of such person after recording the reasons therefor. Despite having been given ample opportunities, the Noticee had failed to avail of the same. I am, therefore, compelled to proceed with the matter ex-parte based on the material available on record.
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Source: SecMarx — sebi:PB/AO-41/2010. 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.