sebi:RA/DPS/121/2017

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

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Facts / Headnote

Adjudication proceedings initiated vide Show Cause Notice dated February 4, 2016 disposed of without imposition of penalty

Provisions invoked

• s. 15
• s. 15J
• s. 15A
• s. 15F
• s. 15C

Parties

• M/s G.M. Breweries Ltd

Holding

The adjudication proceedings against G.M. Breweries Ltd. for alleged failure to redress an investor transmission complaint under Section 15C of the SEBI Act were disposed of without penalty. The 8-month delay was not solely attributable to the Noticee as the complainant failed to provide valid and consistent documents.

Full text

Adjudication Order in respect of M/s G.M. Breweries Ltd Page 2 of 9 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 G.M. Breweries Ltd Page 3 of 9 the notice to show cause as to why an inquiry should not be held against him and why penalty, if any, should not be imposed on the noticee under Section 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 20, 2016 had submitted its reply in the matter, which inter alia stated as under: “……………….  We refer to the captioned subject regarding delayed transmission of shares.  On the outset we would like to inform that the company has already completed the transmission of shares as requested by the complainant and the process had started from the first date of receipt of request.  The Registrar and transfer agents of the company (Sharex Dynamic (India) Pvt. Ltd.) had received a request to transmit the shares registered in the name of Mr. K.V. Subbarao bearing Folio No. K01222, on 12 May, 2014 from his son, Mr. Sai Ratna Kumar Kapilavai (Complainant) along with the copy of the Will executed by Mr. K.V. Subbarao and his Death Certificate.  The Death Certificate and the Will was in the Local Language of Vijaywada. The Complainant was asked to provide translation of the same. On further perusal, it was observed that the Shareholder Mr. K.V. Subbarao, had deceased on 11th January,

Adjudication Order in respect of M/s G.M. Breweries Ltd Page 4 of 9  During all these years, the complainant did not intimate the company or the bank about the status of Mr. K.V. Subbarao. He has been falsely using the name and status of Mr. K.V. Subbarao.  I would further bring to light the fact that Mr. K.V. Subbarao was an individual shareholder and not a joint shareholder. Encashment of the dividend after the demise of the shareholder was unlawful, unethical and fraudulent with mischievous intent.  Further, the complainant was asked to produce No-objection certificate from all the legal heir to such transmission to confirm that such request was from bonafide successor only. He produced the NOC from his mother as a reply for our request.  Further, NOC from his mother mentions the year of death of Mr. K.V. Subbarao as

Source: SecMarx — sebi:RA/DPS/121/2017. 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.