sebi:PJ/VP/29/2017
Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 11(1)
- s. 15J
- s. 15C
Parties
- M/s Classic Diamonds (India) Limited
Holding
The Noticee, being a listed company, violated SEBI Circulars CIR/OIAE/2/2011 read with CIR/OIAE/1/2012 and CIR/OIAE/1/2013 by failing to resolve one investor complaint within the specified time and failing to file the ATR in SCORES. A total monetary penalty of Rs 2,00,000 (Rs 1,00,000 under Section 15A(a) and Rs 1,00,000 under Section 15C) was imposed on M/s Classic Diamonds (India) Limited.
Full text
Adjudication Order in respect of M/s Classic Diamonds (India) Limited Page 2 of 14 2. In term of the SEBI Circulars, the Noticee was supposed to take appropriate necessary steps within 7 days of receipt of complaint through SCORES, and resolve the complaint within 30 days of receipt of complaint and file the ATR in SCORES within 30 days of receipt of the said complaint/ investor grievance, failing which appropriate legal action including initiation of adjudication proceedings against the Noticee and its directors may be initiated by SEBI.
Adjudication Order in respect of M/s Classic Diamonds (India) Limited Page 3 of 14 SHOW CAUSE NOTICE, HEARING & REPLY 5. Show Cause Notice No. EAD/PJ/VRP/12630/2016 (SCN) in terms of the provisions of Rule 4(1) of the Rules was issued to the Noticee on 29.04.2016, calling upon the Noticee to show cause why an inquiry should not be held against it under Rule 4(3) of the Rules read with Section 15 I of the SEBI Act, 1992 for the alleged violations. The said SCN was sent through email in term of Rule 7(b) of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2015 Rules. (hereinafter referred to as ‘Rules’). The said SCN was duly delivered at the Email ID- kkdlegal@gmail.com. However, the Noticee failed to submit it reply to the SCN.
Adjudication Order in respect of M/s Classic Diamonds (India) Limited Page 4 of 14 Email and Hand Delivery/ Affixture. The hearing notice sent through Email was duly delivered. The notice sent through hand delivery could not be delivered and hence the said notice was affixed on the door of the premises on 12.11.2016. However, the Noticee has failed to appear for the hearing on 21.11.2016, however, vide email and letter dated 21.11.2016 submitted its reply to the SCN as under: With reference to you letter No. EAD/PJ/VRP/30638/2016 dated 09.11.2016., we would like to inform that the company is been declared NPA by the lender and the company is in no situation to pay the fees of RTA and Stock Exchange and neither the company has any employees to follow-up the compliances due to which company failed to resolved the complain of the Shareholder. And now the company is not able to locate the data in information to make good the non-compliances done. Please also refer our earlier mail sent to you in this regard. We have enclosed herewith a copy of PAN card of the company as required for your reference. We request you kindly pardon us and grant reasonable time to the company to find a reconcile & search the information and data/ documents.
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Source: SecMarx — sebi:PJ/VP/29/2017. 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.