sebi:PB/AO-71/2010
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Facts / Headnote
Ex-parte penalty imposed
Provisions invoked
- s. 19
- s. 12
- s. 19H
- s. 19D
Regulations
- Reg. 54(5)
- Reg. 54
Holding
The Noticee violated regulation 54(5) of the DP Regulations by failing to complete dematerialization within the stipulated time and is liable for monetary penalty under section 19D of the Depositories Act; a penalty of Rs. 4,00,000 was imposed.
Full text
Page 2 of 12 referred to as "DP Regulations") and liable for penalty under section 19D of the Depositories Act, 1996 (hereinafter referred to as “Depositories Act”).
Page 3 of 12 5. Subsequent to my appointment, a press notification was issued in the English national daily “Hindustan Times” on April 10, 2010 as well as in the Hindi national daily “Hindustan” 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 that the Noticee neither collected the SCN nor replied to the SCN.
Page 4 of 12 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-71/2010. 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.