sebi:PM/AN/2020-21/10277
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Facts / Headnote
Violation found; penalty of Rs 10,00,00,000 imposed on Beckons Industries Limited
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 21
- s. 15H
- s. 15J
- s. 23I
- s. 23J
- s. 23E
- s. 23
- s. 376
Regulations
- Reg. 4
- Reg. 3
- Reg. 3(a)
Parties
- Beckons Industries Limited
Holding
The Adjudicating Officer held Beckons Industries Limited violated Section 12A(a), (b), (c) of SEBI Act read with Regulations 3(a), (b), (c), (d), 4(1), 4(2)(f), (k), (r) of SEBI PFUTP Regulations, 2003 and Clause 36(7) and Clause 50 of Listing Agreement read with Section 21 of SCRA, and imposed a penalty of Rs 10,00,00,000 under Section 15HA of SEBI Act and Section 23E of SCRA.
Full text
Adjudication Order in the matter of GDR issue (2008) by M/s Beckons Industries Limited Page2 of 28 with Regulations 3(a), (b), (c), (d), 4(1), 4(2)(f), (k), (r) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “SEBI PFUTP Regulations, 2003”) and under Section 23E of Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA”) for the alleged violations by the Noticee, of the provisions of Clause 36(7) and Clause 50 of Listing Agreement read with Section 21 of SCRA. The appointment of the AO was communicated vide communique dated September 08, 2017.
Adjudication Order in the matter of GDR issue (2008) by M/s Beckons Industries Limited Page3 of 28 hearing was granted to the Noticee vide email dated 15.12.2020 (beckonsindustriesltd@gmail.com & beckons07@gmail.com) through Video Conference on the Webex platform on 29.12.2020. Vide the said email, scanned copy of the SCN along with the Annexures were again provided to the Noticee. I note that the said email has not bounced back. I further note that the Noticee has neither replied to the SCN nor attended the hearing provided on the aforesaid date. In view of the same, I am of the view that reasonable opportunities to file written representations have been provided to the Noticee. Further, an opportunity of personal hearing has also been provided which the Noticee has failed to avail. In this context, I would like to rely upon the observations of the Hon’ble Securities Appellate Tribunal (SAT) in the matter of Classic Credit Ltd. vs. SEBI (Appeal No. 68 of 2003 decided on December 08, 2006) wherein it, inter alia, observed that - "............ the appellants did not file any reply to the second show-cause notice. This being so, it has to be presumed that the charges alleged against them in the show- cause notice were admitted by them”.
Adjudication Order in the matter of GDR issue (2008) by M/s Beckons Industries Limited Page4 of 28 CONSIDERATION OF ISSUES AND FINDINGS
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