sebi:SD/AO/02/2013
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Facts / Headnote
Disposed without imposition of penalty with warning
Provisions invoked
- s. 15
- s. 19H
- s. 19D
Regulations
- Reg. 54
Holding
The allegations against the Noticee for delay in dematerializing 2,99,800 shares were held not established and the matter was disposed without imposing penalty, with a warning to refrain from repetition.
Full text
Page 2 of 5 2,99,800 shares. By delaying in dematerializing the shares the Noticee allegedly violated Regulation 54 of the SEBI(Depositories and Participants) Regulations, 1996 (hereinafter referred to as “DP Regulations”) and SEBI Circular PMD/SU/11560/99 and was therefore, liable for monetary penalty under section 19D of Depositories Act, 1996 and 15HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 3 of 5 7. In response to the said notice to show cause (hereinafter referred to as the ‘SCN’), the Noticee vide letter dated June 25, 2008 sought time to file a detailed reply. The Noticee vide letter dated July 8, 2009 submitted its previous replies/representations to SEBI and other documents indicating that the Noticee and GIIC were involved in multiple legal proceedings regarding the outstanding loan and the transfer of shares could not be done because of pending litigation between the two parties.
Page 4 of 5 CONSIDERATION OF ISSUES AND FINDINGS: 10. I have carefully perused the charges against the Noticee mentioned in the SCN, the submissions of the Noticee and the documents available on record. On examination of various documents it is observed that the issue dates back to 1996 and due to misunderstanding between the Noticee and GIIC various legal proceedings were initiated by both the parties in various forums.
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Source: SecMarx — sebi:SD/AO/02/2013. 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.