sebi:VSS/AO-67/2008
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Facts / Headnote
Penalty of Rs.15,000 imposed for violation of Regulation 54(5)
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.15,000 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 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 grievances of the investors and steps proposed to be taken to avoid recurrence of such complaints. 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 December 10, 2008 at SEBI, Southern Regional Office, Chennai. Mr. P. Madhu Pratap, Technical Director, appeared on behalf of the Noticee (hereinafter referred to as “AR”). During the hearing, the AR reiterated various steps taken by the company as detailed in its reply dated May 27, 2008 to resolve the grievances of the investors. The AR submitted a copy of advertisements given in the news papers as part of the efforts to resolve the grievances of investors. The AR submitted that the Noticee could not act on the demat requests of the investors due to
Page 4 of 9 a) Whether the Noticee had violated Regulation 54 (5) of DP Regulations? b) Does the violation, if any, on the part of the Noticee attract monetary penalty under section 19D of the Depositories Act?
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Source: SecMarx — sebi:VSS/AO-67/2008. 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.