sebi:PJ/JAK/11/2016
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Facts / Headnote
Penalty of Rs. 1,00,000 imposed under Section 15HB for failure to obtain SCORES authentication; charge under Section 15C for failure to redress investor complaint held not established
Provisions invoked
- s. 15
- s. 19
- s. 15J
- s. 15C
Parties
- M/s Arihant Thermoware Limited
Holding
The Noticee violated SEBI Circular No. CIR/OIAE/1/2012 dated August 13, 2012 by failing to obtain SCORES authentication and is liable to penalty under Section 15HB of the SEBI Act. The charge of violation attracting penalty under Section 15C for failure to redress one investor complaint was held not established.
Full text
Adjudication Order in respect of M/s Arihant Thermoware Limited Page2 of 11 No. CIR/OIAE/1/2012 dated August 13, 2012. The same was also communicated to the Noticee by SEBIvide its letter Ref. No. OIAE1/MRG/16931/2014 dated 16.06.2014 (inadvertently mentioned as 18.11.2014 in the Show Cause Notice).
Adjudication Order in respect of M/s Arihant Thermoware Limited Page3 of 11 Delivery, however, it was returned undelivered with a remark “Consignee Shifted/Moved”. Since the SCN sent through Hand Delivery could not be delivered, the hearing notice dated 15.02.2016 was affixed on the door of the premises on 16.02.2016.The Noticee was advised to file reply to the SCN by 24.02.2016, hearing date being 25.02.2016. Hearing notice dated 15.02.2016 was also sent through Speed Post and Acknowledgement Due on the same address which is the address of the Registered Office of the Noticee as per the MCA website. The said notice was returned undelivered with a remark “Left”. However, the Noticee has failed to reply to the SCN till date and further failed to appear before the undersigned for the opportunity of hearing granted on 25.02.2016. In the said SCN and in the hearing notices it was specifically stated that,if the Noticee fails to submit their reply to the SCN or fails to attend the hearing proceeding on the stipulated date and time, it will be presumed that Noticee has no submissions to offer in its defense and the matter would be further proceeded with on the basis of the material available on record. I note that the Noticee failed to submit the reply to the SCN and also failed to appear for hearings to substantiate their case towards the allegations stated in the SCNs. For the reasons mentioned above, I observe that the Noticee was provided with enough opportunities to submit rep
Adjudication Order in respect of M/s Arihant Thermoware Limited Page4 of 11 7.1. Whether the Noticee has violated 7.1.1. the provisions of Circular viz., SEBI Circular No. CIR/OIAE/1/2012 dated August 13, 2012 by failing to obtain SCORES authentication which attracts monetary penalty under Section 15 HB of SEBI Act? 7.1.2. the provisions of Circular viz., SEBI Circular No. CIR/OIAE/1/2012 dated August 13, 2012 by failing to redress one investor complaint within the prescribed time which attract monetary penalty under Section 15C of SEBI Act? 7.2. If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in Section 15J of SEBI Act?
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Source: SecMarx — sebi:PJ/JAK/11/2016. 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.