sebi:WTM/GM/MIRSD/32/2020-21
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Facts / Headnote
Enhanced penalty imposed on the Noticee under Section 15HB of the SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 28A
- s. 15T
- s. 263(1)
- s. 119
- s. 931
Regulations
- Reg. 13
- Reg. 15
- Reg. 24
- Reg. 24(7)
- Reg. 33
Parties
- India Ratings and Research Private Limited
Holding
SEBI, in exercise of its review powers under Section 15-I(3) of the SEBI Act, held that the Adjudicating Officer's order imposing a penalty of Rs.25,00,000 on India Ratings and Research Private Limited was erroneous to the extent it was not in the interests of the securities market, and enhanced the penalty to Rs.1,00,00,000 under Section 15HB of the SEBI Act.
Full text
Order in the matter of India Ratings and Research Private Limited Page 2 of 29 defaulted in the interest payments on its NCDs on various dates i.e. September 17, 21, 26 and 29, 2018.
Order in the matter of India Ratings and Research Private Limited Page 3 of 29 (CRA)Regulations and imposed a penalty of Rs.25,00,000 on the Noticee under Section 15HB of the Securities and Exchange Board of India (“SEBI”) Act, 1992.
Order in the matter of India Ratings and Research Private Limited Page 4 of 29 02, 2020, intimated the Noticee that their request for keeping the matter in abeyance was not acceded to as SAT has not granted any stay on the SCN. Noticee, vide email dated March 13, 2020, inter-alia, sought an opportunity to inspect relevant documents relied upon in the SCN. Considering the lock-down and situation prevailing on account of Covid-19, an opportunity for electronic inspection of relevant documents was granted to the Noticee on June 19, 2020. As requested by the Noticee, an opportunity for personal hearing through video conferencing was also granted to the Noticee on June 29, 2020, which was attended by Pesi Modi, Sandeep Parekh, Rohit Swahney, Ananda Bhoumik, Deepika Goyal, Advocates, and Anuj Berry and Neville Lashkari, authorised representatives of the Noticee. Gist of oral submissions made therein and subsequent written submissions made vide letter dated July 06, 2020, is given below: a. The Noticee has filed an Appeal against the AO Order before SAT and requested for stay of the current review proceedings till SAT disposes of the said Appeal. b. The current proceedings under Section 15-I(3) of the SEBI Act is not an appellate jurisdiction and are not maintainable as the requirements stated therein including ‘examination of facts’, ‘error’ in AO Order ‘to the extent that it is not in the interest of securities market’ are not met. c. The SCN does not point out what is erroneous i
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Source: SecMarx — sebi:WTM/GM/MIRSD/32/2020-21. 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.