TaxTMI 
TaxTMI 
2018 (3) TMI 2069
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....rts (ATRs) along with supporting document, if any, electronically in SCORES. Failure by listed companies to file ATR under SCORES within 30 days of receipt of the grievance shall not only be treated as failure to furnish information to SEBI but shall also be deemed to constitute non-redressal of investor grievance. 2. It was observed that two (2) complaints were pending against M/s. ACI Infocom Ltd. (hereinafter referred to as "Noticee/the Company) and it was alleged that the Noticee had failed to furnish information to SEBI by not filing ATR under SCORES and thereby not redressed the investor grievances. 3. It was therefore alleged that the Noticee failed to comply with the provisions of SEBI Circular dated December 18, 2014 and thus liable for penalty under Sections 15 HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "SEBI Act"). APPOINTMENT OF ADJUDICATING OFFICER 4. I have been appointed as the Adjudicating Officer vide Order dated November 11, 2017 under Section 19 of the SEBI Act read with Section 15-I (1) of SEBI Act and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (her....
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....Act.? (c) If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in Section 15J of SEBI Act? FINDINGS 11. I have carefully perused the written submissions of the Noticee, and the documents available on record. It is observed that the Noticee failed to furnish information to SEBI by not filing ATR under SCORES within the specified time, as per SEBI Circular dated December 18, 2014. ISSUE -1: Whether the Noticee failed to furnished information to SEBI by filing ATR under SCORES and complied with the provisions of SEBI Circular dated December 18, 2014? FACTS ON RECORD 12. I note from the record that two complaints which were pending against the Noticee were resolved by the Noticee on September 24, 2013 and February 23, 2015 respectively. The said complaints were closed on SCORES belatedly on February 26, 2015. 13. I note that the non redressal of the complaints has been dealt with separately and the adjudication order in this respect has already been passed on September 14, 2017. 14. SEBI vide Circular No. CIR/OIAE/1/2014, dated December 18, 2014 directed that all listed companies and SEBI registered ....
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....em in the adjudication proceedings and, therefore, appellants are presumed to have admitted charges leveled against them in the show cause notices..." 20. It is the duty of SEBI to ensure speedy resolution of investor grievances, and for furtherance of such objective, SEBI through a centralized web based SEBI Complaints Redressal System (SCORES) has provided a platform for aggrieved investors, whose grievances pertaining to the securities market remain unresolved by the concerned listed company. It is therefore important that listed companies including the Noticee complement the regulators efforts by complying with various directives as laid down in SEBI circulars relating to investor redressal mechanism and investor protection. However, it is observed from the above that the Noticee has consistently failed and neglected to comply with the SEBI Consolidated Circular CIR/OIAE/1/2014, dated December 18, 2014 to obtain a Login ID and password. In view of above, I conclude that the allegation of non-obtaining of SCORES Authentication is established against the noticee and therefore violated SEBI Consolidated Circular CIR/OIAE/1/2014, dated December 18, 2014 to obtain a Login ID and ....
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.... nature of the default. 25. I take into consideration the factor "the amount of loss caused to an investor or group of investors as a result of default", in view of non-filing of ATR on SCORES, Delay in taking SCORES authentication. The non filing of ATR shows the non-transparent approach of the Noticee. As per the provisions of Section 15HB of SEBI Act, a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less can be levied. However, the Noticee has belatedly taken the SCORES authentication for filing the ATR and also taken the SCORES authentication for filing the ATR to resolve the complaints. I also note that Noticee has already been imposed the penalty of Rs. 4,00,000/- (Rupees Four Lakhs Only) for non redressal of the complaints under Section 15 C of the SEBI Act in terms of the same complaints regarding which non filing of the ATR has been alleged against the Noticee in the instant case. Therefore, I consider them as mitigating factors for adjudging the quantum of penalty against the Noticee. ORDER 26. The loss caused to an investor/group of investors cannot be directly quantified and also taking into conside....