sebi:RC/AO-01/2012
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Facts / Headnote
Penalty imposed on the noticee for violations of Section 15C and Section 15A(a) of the SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 15C
Parties
- M/s ICES Software Limited
Holding
The noticee was found to have violated Section 15C for failing to redress investor grievances and Section 15A(a) for failing to furnish a complete status/ATR to SEBI, and was imposed a penalty of Rs. 20,000 for the Section 15C violation and Rs. 10,000 for the Section 15A(a) violation.
Full text
Page 2 of 11 4. Failing to receive any report / reply from the noticee, yet another reminder was sent to the noticee vide letter reference no. OIAE/AV/148080/2008 dated December 19, 2008 advising the noticee to resolve the afore mentioned complaints within 7 days and submit the status report within the said period, failing which SEBI may initiate actions as deemed appropriate including initiation of Adjudication proceedings in accordance with law. The aforesaid letter was sent by Speed Post Acknowledgement Due and the service of the same is on record.
Page 3 of 11 SHOW CAUSE NOTICE, HEARING AND REPLY 9. A show cause notice (hereinafter referred to as ‘SCN’) No. ISD/NS/SCN/178884/2009 dated October 06, 2009 was issued to the noticee under rule 4 of the SEBI (Procedure for holding inquiry and imposing penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to show cause as to why an inquiry should not be held against the company and penalty be not imposed on the company under section 15C and 15A(a) of the SEBI Act for the alleged violation specified in the said SCN. The SCN alleged that Noticee did not redress the grievances of investors when called upon to do so by SEBI vide its letter OIAE/139169/2008 dated September 25, 2008. The said SCN was sent by RPAD and the service of the same is on record.
Page 4 of 11 14. The submissions made by the Mr. Raghuvir C Bhatt, Compliance Officer during the hearing are mainly to the following effect: • The financial condition of the company has been deteriorating due to various unavoidable circumstances since the year 1999. The financial problems led to various offices of ICES being sealed due to which the complaints remained unattended and ICES failed to submit the ATR to SEBI. • 29 complaints resolved and the remaining 28 are still pending. • To provide a copy of correspondence with SEBI seeking addresses/ copy of complaints and proof of redressal of grievances of 29 investors within 30 days. • To furnish details of pending complaints within 30 days. • Prayer to take a lenient view in these circumstances.
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Source: SecMarx — sebi:RC/AO-01/2012. 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.