sebi:SEBI/SRO/SBM-AO/1/2014
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Facts / Headnote
Matter disposed of without penalty; alleged violation not established
Provisions invoked
- s. 15
Holding
The alleged violation of Section 15C of the SEBI Act by the Noticee was held not established and the matter was accordingly disposed of without imposition of any penalty.
Full text
Page 2 of 4 Show Cause Notice, Reply of the Noticee and Personal Hearing: 3. A Show Cause Notice ref No AO/SCN/SBM/23850/2012 dated October 29, 2012(hereinafter referred to as SCN) was issued to the Noticee under Rule 4 of the Adjudication Rules, to show cause as to why an inquiry be not held against the Noticee and penalty be not imposed under Section 15 C of the SEBI Act, for the non redressal of the investor grievance by the Noticee. It was alleged in the SCN that the Noticee had failed to redress the pending investor grievance against it in the SCORES within the time specified and thereby violated the provisions of Section 15 C of the SEBI Act, 1992. The copies of the documents relied upon in the SCN were provided to the Noticee along with the SCN.
Page 3 of 4 5. In the interest of natural justice and in order to conduct an inquiry in terms of Rule 4 (3) of the Adjudication Rules, the Noticee was granted an opportunity of a personal hearing on May 6, 2013 vide letter ref AO/SCN/SBM/EIL/8844/2013 dated April 12, 2013. However, in view of certain official exigencies the personal hearing granted to the Noticee on May 6, 2013 could not take place and an e‐mail was sent to the Noticee in this regard on May 2, 2013 informing them about the postponement of the personal hearing date. Vide letter ref AO/SCN/SBM /EIL/ 24281/2013 dated September 23, 2013 another opportunity was granted to the Noticee informing them about the personal hearing date in the matter which was fixed on October 8, 2013.
Page 4 of 4 8. I also observe that the Noticee in their reply sent to SEBI had also enclosed a documentary proof to support the fact that the investor had deposited the dividend warrant issued to him in his bank account maintained with the ICICI Bank, Hosur Branch on 29th October 2011 and the instrument was cleared by the bank on 31st October 2011. In view of the same, I note that the complaint alleged to be shown as pending against the Noticee had been redressed much before the initiation of the Adjudication process against it. I also note that the Noticee through their earlier letters dated February 8, 2012, May 3, 2012 and June 18, 2012 had brought to the attention of SEBI ( OIAE ) the login issues that they were facing in the matter and also that they were unable to access the SCORES portal as they were yet to receive the password in this regard. In view of the same, the Noticee mentioned that they were not in a position to update the redressed status of the grievance in the SCORES portal and also submit the Action Taken Report.
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Source: SecMarx — sebi:SEBI/SRO/SBM-AO/1/2014. 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.