sebi:VKV/AS/AO-36/2018

SEBI · SEBI · 2015-02-13 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

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

Provisions invoked

• s. 15
• s. 15I
• s. 15J
• s. 15C

Parties

• M/s Narang Industries Ltd.

Holding

The Noticee failed to resolve 2 pending investor grievances in SCORES in violation of SEBI directives, and a monetary penalty of Rs. 2,00,000 under Section 15C of the SEBI Act, 1992 was imposed on M/s Narang Industries Ltd.

Full text

Adjudication Order against M/s Narang Industries Ltd. March 12, 2018 Page 2 of 6 SCORES for redressing the investors grievances and subsequent redressal thereof, within specified time. Thus, it was alleged that Noticee had failed to redress pending investor grievances which renders the Noticee liable for imposition of penalty under Section 15C and 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act, 1992').

Adjudication Order against M/s Narang Industries Ltd. March 12, 2018 Page 3 of 6 given matter if another opportunity of hearing under Rule 4 (3) of Adjudication Rules is not provided to it.

Adjudication Order against M/s Narang Industries Ltd. March 12, 2018 Page 4 of 6 12. Hon’ble SAT in S. S. Forgings & Engineering Limited & Others v SEBI, Appeal No. 176 of 2014 (decided on August 28, 2014) has, inter-alia, observed that – “………………Undoubtedly, an obligation is cast upon every listed company to redress investors’ grievances in a time bound manner as may be prescribed by SEBI from time to time………. This Tribunal has consistently held that redressal of investors’ grievances is extremely important for the Regulator to regulate the capital market. If the grievances are not redressed within a time bound framework, it leads to frustration among the investors’ who may not be motivated to further invest in the capital market. Hence the importance of complaints redressal system initiated by SEBI in June, 2011 cannot be undermined and its sanctity has to be maintained by all the listed companies…….”. Therefore, I hold that the Noticee has failed in its duty by not resolving the investor grievances pending against it as alleged in the SCN.

Source: SecMarx — sebi:VKV/AS/AO-36/2018. 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.