Misc. Application No. 2 of 2017, Misc. Application No. 296 of 2016 and Appeal No. 345 of 2016. Case: Chaman Exports Ltd Vs The Securities and Exchange Board of India. Securities and Exchange Board of India

Case NumberMisc. Application No. 2 of 2017, Misc. Application No. 296 of 2016 and Appeal No. 345 of 2016
Party NameChaman Exports Ltd Vs The Securities and Exchange Board of India
CounselFor Appellant: Jeetendra Kumar Pandey, Advocate and For Respondents: Pulkit Sukhramani, Advocate i/b. The Law Point
JudgesJ.P. Devadhar, J. (Presiding Officer) and Dr. C.K.G. Nair, Member
IssueSecurities And Exchange Board of India Act, 1992 - Sections 15HB, 15J
Judgement DateJanuary 06, 2017
CourtSecurities and Exchange Board of India

Order:

Dr. C.K.G. Nair, Member

Misc. Application No. 2 of 2017

By Misc. Application No. 2 of 2017 the appellant filed an application for restoration of the appeal dismissed vide this Tribunal's order dated 15th December, 2016 for want of prosecution. By this Misc. Application the applicant has submitted that there was a communication error regarding the last date of hearing and hence his counsel could not be present before this Tribunal. Since counsel for the applicant was not present even on the earlier occasion, the Misc. Application is allowed subject to payment of costs of Rs. 10,000/- to be paid by the appellant to SEBI within four weeks from today. Misc. Application No. 2 of 2017 is disposed of accordingly.

Misc. Application No. 296 of 2016

There is a delay of 3 days in filing appeal No. 345 of 2016. For the reasons stated in the Misc. Application the delay is condoned and the appeal is taken up for hearing. Misc. Application No. 296 of 2016 is disposed of accordingly.

Appeal No. 345 of 2016

  1. The appellant, M/s. Chaman Exports Ltd, is aggrieved by the order of the Adjudicating Officer of Securities and Exchange Board of India ('SEBF for short) dated 7th January, 2016. By the said order penalty of Rs. 1,50,000/ - was imposed against the appellant under section 15HB of the Securities and Exchange Board of India Act, 1992 ('SEBI Act' for short) for failure to obtain SEBI Complaints Redressal System ('SCORES' for short) authentication by a specified date.

  2. The appellant was a listed company at the relevant time; listed on Calcutta Stock exchange and UP Stock Exchange. As per SEBI Circular No. CIR/01AE/1/2013 dated 17th April, 2013 all listed companies had to obtain authentication of the SCORES which would enable the listed companies to redress investor grievances within specified time limits. Since several listed companies, including the appellant herein, did not comply with the circular and obtain SCORES authentication a letter was issued by SEBI on 2nd December, 2013 asking them to obtain SCORES authentication by December 18, 2013. Since the appellant did not obtain the SCORES authentication even by this date SEBI issued a show cause notice on 6th March, 2015 asking as to why penalty should not be imposed on the appellant under section 15HB of the SEBI Act. The appellant replied to the show cause notice on 17th March, 2015 stating that the company on receipt of SEBFs letter dated 2nd December, 2013 wrongly took SCORES registration...

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