sebi:VSS/AO-203/2009
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Facts / Headnote
Violation of Regulation 54(5) established; monetary penalty of Rs.2,00,000 imposed under Section 19D
Provisions invoked
- s. 4(3)
- s. 12
- s. 19H
- s. 19D
- s. 19I
Regulations
- Reg. 199
- Reg. 54(5)
- Reg. 54
Parties
- SIBAR
Holding
The Noticee violated Regulation 54(5) of the DP Regulations by failing to complete dematerialization within the stipulated time and was held liable for monetary penalty under Section 19D of the Depositories Act, with a penalty of Rs.2,00,000 imposed.
Full text
Page 2 of 9 2. The aforesaid delay is alleged to be in violation of regulation 54 (5) of SEBI (Depositories and Participants) Regulations 1996, (hereinafter referred to as "DP Regulations") and liable for penalty under section 19D of the Depositories Act, 1996 (hereinafter referred to as the “Depositories Act”). Accordingly, SEBI initiated adjudication proceedings under section 4(3) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) read with section 19H of the Depositories Act against SIBAR vide order dated March 10, 2008.
Page 3 of 9 that pending demat requests would be completed before the end of April 2008. 6. In the interest of natural justice and in order to conduct an inquiry in terms of rule 4(3) of the Rules, the Noticee was granted an opportunity of hearing on August 28, 2008 vide letter dated August 06, 2008. The said letter had been delivered to the Noticee through SPAD as per the acknowledgement received. However, the Noticee neither appeared nor requested adjournment. The second opportunity of hearing was granted to the Noticee on May 13, 2009 vide letter dated April 22, 2009 through ASE. The said letter was also delivered to the Noticee as per the acknowledgement received through ASE. However, the Noticee neither appeared nor requested adjournment. The third opportunity of hearing was granted to the Noticee on June 11, 2009 vide letter dated May 18, 2009 through SEBI, Western Regional Office, Ahmedabad (hereinafter referred to as “WRO”). The said hearing notice was pasted on the premises of the Noticee as per the communication of WRO dated June 05, 2009 with remark that “indicated address was found locked”. The last opportunity of hearing was granted to the Noticee on August 03, 2009 vide letter dated June 25, 2009 through WRO. The said letter had been delivered to the Noticee as per the acknowledgement received through WRO July 22, 2009. Mr. Jayesh B. Patel Chairman of the Noticee appeared and submitted, inter alia, as under:
Page 4 of 9 7. I have carefully perused the written and oral submissions of the Noticee and the documents available on record. The issues that arise for consideration in the present case are :
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Source: SecMarx — sebi:VSS/AO-203/2009. 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.