sebi:RA/JP/50-57/2016
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Facts / Headnote
Noticee No.1 penalized under Sections 15C and 15HB; Noticee Nos.2 and 6 penalized under Section 15HB; proceedings against Noticee No.3 abated on death; Noticee Nos.4, 5, 7 and 8 exonerated; ex-parte decision against Noticee Nos.1, 2, 4-6.
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 15H
- s. 27
- s. 15J
- s. 15C
- s. 18
- s. 2(60)
Holding
Noticee No.1 violated Sections 15C and 15HB for prolonged non-redressal of 11 investor grievances and non-compliance of WTM Order No. WTM/RKA/OIAE/28/2012 dated August 10, 2012 and was penalized Rs.1,10,00,000; Noticee Nos.2 and 6 as Managing Director and Whole Time Director violated Section 15HB and were penalized Rs.10,00,000 each; proceedings against deceased Noticee No.3 abated and Noticee Nos.4-5 and 7-8 were held not liable.
Full text
Page 2 of 24 being called upon by SEBI to do; and for failing to comply with the directions issued under SEBI order No. WTM/RKA/OIAE/28/2012 dated August 10,
Page 3 of 24 dealing in securities, directly or indirectly in whatsoever manner, till all the investor’s grievances against the Company / Noticee No. 1 are resolved. Further, as per aforesaid order, upon failure by the Company/its directors to redress the grievances of the investors, the enforcement action under the SEBI Act, without prejudice to actions, if any, under any other law, can be taken against the Company/its directors (Noticees). Copy of SEBI Order No. WTM/RKA/OIAE/28/2012 dated August 10, 2012 was enclosed asAnnexure- IV along with SCN.
Page 4 of 24 Noticee No. 7 & 8 and they had filed their common reply dated December 01, 2015 towards the SCN. 6. However, the SCN issued to the Noticee No. 1-6 at their last known 3 addresses (viz. B-1/304, Brahama Memories, Bhosle Nagar, Pune- 411007; 61/3, New Purnima Housing Society, Salisbury Park, Gultekri, Pune – 37; and NirmanKutir, Yari Road, VarsovaAndheri (W) – 400061) were returned undelivered by the Postal Department with remarks “Not at given address / Not Known”. It is necessary to mention here that the 1st address (viz. Pune- 07) shown above is the Registered address of the Company/Noticee No.1 as also shown in Ministry of Corporate Affairs (MCA) Website. However, during the course of proceeding before Ld. Whole Time Member (Ld.WTM) of SEBI as also shown as para 8 of the Ld. WTM order dated August 10, 2012, it was mentioned by the Company and its Directors (Noticees) that it had shifted its registered office at 2nd address as shown above (viz. Pune- 37). Therefore, the SCNs were attempted to be served at both the Regd. Addresses of the Noticee No. 1-6, but returned undelivered as state above.
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Source: SecMarx — sebi:RA/JP/50-57/2016. 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.