TaxTMI 
TaxTMI 
2025 (11) TMI 1564
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....siding Officer This appeal is directed against order dated December 29, 2023 passed by the AO Adjudicating Officer, Securities and Exchange Board of India, SEBI Securities and Exchange Board of India imposing a monetary penalty of Rs. 6 Lakhs on the appellant under section 15HB of SEBI Act, 1992 Securities and Exchange Board of India Act, 1992 for violation of SEBI(RTA) Regulations, 1993 Securities and Exchange Board of India (Registrars to Issue and Share Transfer Agents) Regulations, 1993., SEBI(LODR) Regulations, 2015 Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, SEBI(CAP) Regulations, 2007 Securities and Exchange Board of India (Certification of Associated Persons in the S....
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.... destroyed share certificates was not properly maintained as mandated by the Circulars and Regulation. 4. The appellant was called upon to show cause as to why an inquiry should not be held under Rule 4 of SEBI (AO) rules read with Section 15-I of the SEBI Act and penalty not imposed under Section 15HB of the SEBI Act. The appellant submitted its reply and after adjudication, SEBI has passed the impugned order. 5. Shri Kunal Kataria, learned Advocate for the appellant submitted: • That Mr. Radhey Shyam Jhanwar, the Director of the appellant could not complete the NISM Certification exam due to poor internet connection on the day of examination. He had inadvertently pressed the back/refresh button. There were other associa....
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....pellant had not processed the change of address requests in 156 cases within the prescribed time limits. As per SEBI Circular dated November 3, 2021 SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 and clarification Clarification issued vide Circular No. SEBI/HO/MIRSD_RTAMB/P/CIR/2021/687 dated December 14, 2021, a time line for 15 days is required to be given for raising objection. To give complete effect, additional four days are considered which works out to 19 days. If the additional time is considered as 19 days, the number of cases will get reduced substantially; • That the appellant's delay in change of bank account details in 513 cases had occurred due to receipt of bulk KYC updation requests during the relevant period and inte....
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....d liable; • That during the inspection it was found that two agreements entered into by the appellant were not in accordance with the draft agreement. The appellant has carried out the necessary amendments in the agreements only after inspection. Subsequent compliance does not entitle the appellant to be absolved from the imposition of penalty and the appellant was in violation of clauses 11, 12 and 17 of the Draft Agreement during the relevant period. Non-inclusion of the mandatory clauses which are available in the standard format raised serious doubts in the bona fides of the appellant; • That the appellant's inward processing system was faulty and prone to errors and was not in line with the mandatory requireme....
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.... for destroyed share certificates maintained by the appellant did not include all the relevant details as mandated under the extant Circulars ad Regulations. The violations were admitted by the appellant and no plausible explanation has been given by the appellant as to why the relevant information was missing with respect to name of the authority to authorize the destruction and in whose presence was it destroyed along with the date of authorization of destruction. After inspection, appellant has only taken corrective steps which was an afterthought; • That the appellant has admitted all the violations and the appellant has repeatedly violated the Regulations, Circulars and Notifications. With these submissions, SEBI has praye....