sebi:RA/DPS/141/2017

SEBI · SEBI · 2010-02-09 · Rachna Anand, Adjudicating Officer

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Facts / Headnote

Penalty of Rs 2,50,000 imposed on M/s JSW Steel Limited under Section 15C of the SEBI Act, 1992 for failure to redress investor grievance

Provisions invoked

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

Parties

• M/s JSW Steel Ltd

Holding

The Noticee, a listed company, violated Section 15C of the SEBI Act by failing to redress an investor complaint within the time specified and merely filing ATRs, and is liable to a monetary penalty of Rs 2,50,000.

Full text

Adjudication Order in respect of M/s JSW Steel Ltd Page 2 of 11 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 JSW Steel Ltd Page 3 of 11 4. A Show Cause Notice no. SEBI/HO/EAD/EAO/OW/P/2016/3082/1 dated February 04, 2016 (hereinafter referred to as 'SCN') was served on the noticee, requiring 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 10, 2016 through the Department of Post. Noticee vide letter dated February 15, 2016 had submitted its reply in the matter, which inter alia stated as under: “……………….  One pending complaint is a case of fraud where the complainant, bought physical shares off market from one Mr. Jaichand Shah who had got procession of the shares but was not the rightful owner of the same and had sold the shares to the complainant. When the complainant lodged the shares for transfer, the R&T agent refused to transfer the shares and returned the original Transfer deed and copy of share certificate to the complainant vide letter dated 09.02.2010 requesting him to approach the seller for settlement.  However, the complainant instead of approaching the seller for settlement chose to pursue the matter with the Company through SEBI and has in the past lodged several complaints with SEBI which has been disposed of by SEBI as detailed below: Reference No. Complaint Date Date of Disposal of ca

Adjudication Order in respect of M/s JSW Steel Ltd Page 4 of 11  Thereafter in an attempt to close the complaint once and for all, a meeting with the complainant and the Company was called by SEBI on 28.10.2015 as SEBI office but the complainant did not attend the meeting. Thereafter several attempts were made to get the complainant to attend the meeting by SEBI.  Finally, on 11/01/2016 the complainant attended the meeting. The matter was discussed at SEBI office in the presence of the complainant, Karvy officials from Hyderabad and officials of the Company and SEBI. The Company & Karvy officials produced various documentary evidence to SEBI and the Complainant including the application copy of the genuine shareholder in the IPO. The complainant appeared to be convinced with the

Source: SecMarx — sebi:RA/DPS/141/2017. 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.