sebi:RA/DPS/237/2017

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

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Facts / Headnote

Violation of Section 15C established; penalty of Rs 2,00,000 imposed

Provisions invoked

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

Parties

• M/s KEC International Limited

Holding

The Noticee violated Section 15C of the SEBI Act by failing to redress the investor grievance within the prescribed time, and a monetary penalty of Rs 2,00,000 was imposed on M/s KEC International Limited.

Full text

Adjudication Order in respect of M/s KEC International 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 KEC International Limited Page 3 of 13 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 25, 2016 had submitted its reply in the matter, which inter alia stated as under: “……………….  We are in receipt of Show Cause Notice dated February 04, 2016 and received by us on February 08, 2016 with the aforesaid reference number (herein referred as “said complaint”) towards non-complaince of Clause 12 and 13 of SEBI Circular No. CIR/OIAE/1/2014 dated December 18, 2014, as well as failure to take appropriate steps to redress the investor complaint.  We had vide our letter dated February 19, 2016 requested for additional time up to February 26, 2016 for responding to the captioned Show Cause Notice.  At the outset, we would like to apprise you on the facts of the case and then the actions taken to redress the complaint.  The facts of the case are as follows: Mr. Dewki Nandan Jodhani (hereinafter referred to as “Mr. Jodhani”) claims to have purchased 500 shares of the company in the market (after considering all the corporate actions till date of the company, the quantity is 2500 shares) from the registered shareholder in the year 2000 and had sent the documents to transfer the shares in his name to the wrong address of the company. The documents were not received by the company then and were apparently lo

Adjudication Order in respect of M/s KEC International Limited Page 4 of 13 certificate and the duplicate share certificate was subsequently issued to her. Thereafter, Mrs. Chandak sold the shares to a third party in the year 2008-09.  Mr. Jodhani has then in the year 2014 approached the company through SEBI claiming for his shares and filed a complaint on SCORES Portal on 06.06.2014.  We started our process of investigation and had also forwarded the complaint to Link Intime. As an initial action, Link Intime had sent a letter dated 22.07.2014 to Mrs. Chandak informing her about the claim received from Mr. Jodhani. Further, Link Intime also advised Mrs. Chandak to purchase 2500 shares from the market and surrender it to them as she had allegedly obtained the duplicate share certificate by misrepresenting Link Intime. The details of the letter sent to Mrs. Chandak was intimated to Mr. Jodhani vide letter dated 02.08.2014. Copies of both the letters are attached herewith as Annexure 1 and 2 respectively.  Further actions and communication with the concerned parties including ATR upload.  Thereafter, Link Intime received response from Mrs. Chandak vide letter dated 06.08.2014 (attached as Annexure 3) refusing such sale of shares to Mr. Jodhani and also denying that she does not know Mr. Jodhani at all. She had also asked for the copies of the documents lodged by Mr. Jodhani regarding purchase of shares and issue of duplicate shares. Link Intime had provided copies of the re

Source: SecMarx — sebi:RA/DPS/237/2017. 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.