sebi:PJ/JAK/14/2016

SEBI · SEBI · 2014-11-18 · Prasad P. Jagadale, Adjudicating Officer

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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 Mark Omega Organic Industries 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 of Rs. 1,00,000 under Section 15HB of the SEBI Act; violation of Section 15C for failure to redress one investor complaint is not established.

Full text

Adjudication Order in respect of M/s Mark Omega Organic Industries Limited Page 2 of 10 communicated to the Noticee by SEBIvide its letter Ref. No. OIAE1/KP/28839/2014 dated30.09.2014(Inadvertently mentioned as dated 18.11.2014 in the Show Cause Notice).

Adjudication Order in respect of M/s Mark Omega Organic Industries Limited Page 3 of 10 with a remark “Company Close”. Since the SCN sent through SPAD could not be delivered, the SCN dated 09.02.2016 was issued and affixed on the door of the premises, on the alternate address by Hand Delivery. Since the same could not be delivered, the SCN was affixed at the alternate address on 10.02.2016advising the Noticee to reply within 14 days. 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 11.03.2016 vide hearing notice dated 25.02.2016affixed on the door of the premises on 27.02.2016, advising the noticee to send its reply by March 10, 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 proceedings 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 Noticeehas 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 reply/ to be heard and hence, I am constrained to proceed ex-parte with the matter on the

Adjudication Order in respect of M/s Mark Omega Organic Industries Limited Page 4 of 10 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 oneinvestor complaintwithin 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?

Source: SecMarx — sebi:PJ/JAK/14/2016. 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.