sebi:RA/DPS/101/2017

SEBI · SEBI · 2016-01-12 · Rachna Anand, Adjudicating Officer

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Facts / Headnote

Penalty of Rs. 3,00,000 imposed under Sections 15A(a) and 15C of the SEBI Act

Provisions invoked

• s. 11B
• s. 11
• s. 15A
• s. 15
• s. 15J
• s. 15F

Parties

• M/s Varun Shipping Company Limited

Holding

The Noticee violated Sections 15A(a) and 15C of the SEBI Act by failing to file ATR under SCORES within thirty days for ten investor complaints, and a total monetary penalty of Rs. 3,00,000 was imposed.

Full text

Adjudication Order in respect of M/s Varun Shipping Company Limited Page 2 of 13 Clause 13: “Failure by listed companies and SEBI registered intermediaries to file ATR under SCORES within thirty days of date of receipt of the grievance shall not only be treated as failure to furnish information to SEBI but shall also be deemed to constitute non-redressal of investor grievance.”

Adjudication Order in respect of M/s Varun Shipping Company Limited Page 3 of 13 any, should not be imposed on the noticee under Section 15A(a) and 15C of the SEBI Act for the violations alleged to have been committed by the Noticee. The said SCN was duly delivered to the Noticee on February 8, 2016 through the Department of Post. Noticee vide letter dated February 16, 2016 had submitted its reply in the matter, which inter alia stated as under: “……………….  We refer to your show cause notice dated February 5, 2016 which received by us on February 8, 2016. In this regard we wish to state that the Company received a similar show cause notice dated May 7, 2014 for non-redressal of Investor Grievances mainly pertains to non-receipt of dividend declared by the company. Since the Company has inadvertently not replied to the said notice, SEBI appointed Mr. D Ravi Kumar as Adjudicating Officer and also issued a Personal Hearing notice for 11B proceedings before the Whole Time Member, SEBI – Mr. Rajeev Kumar Agarwal.  Thereafter the Company has paid the dividend and interest on delayed dividend on 7th April, 2015 and 30th April, 2015 respectively and also resolved all the 93 investor grievances by 14th May, 2015 except one complaint which pertains to dispute between the transferor and transferee of the company’s shares.  After several personal hearing, submissions made by the Company and payment of dividend and interest to the shareholders, the said Adjudicating Officer issued adjudi

Adjudication Order in respect of M/s Varun Shipping Company Limited Page 4 of 13 has paid the dividend and interest to the shareholders and resolved all the pending investor grievances within the stipulated time and also provided the supporting documents.  Subsequent to that the Hon’ble Whole Time Member has passed the necessary revocation order bearing no. WTM/RKA/EFD/51/2015 dated June 11, 2015. We also attach herewith the complaints status as on 5th June, 2015 downloaded from the SCORES website wherein it is clearly mentioned that there are no pending complaints.  We therefore humbly request you to make note of the above submissions and also note that the Company has already redressed all the investor grievances as stipulated by the SEBI Order.  We request you to please cancel/revoke the present show cause notice issued to the Company. ………………”

Source: SecMarx — sebi:RA/DPS/101/2017. 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.