9911796707
TMI Blog2013 (10) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... rest of investors and would, undoubtedly include timely redressal of grievances of investors - There can be no dispute with this proposition of law. The company was a sick industrial company - It had financial constraints - Its inability to appoint a full time company secretary was also evident from the record even fees to the share transfer agent, NSDL and CDSL could not be arranged - these were important factors which should have motivated the Adjudicating Officer to impose a lesser penalty in the matter - Therefore, in the peculiarity of the facts and circumstances of the case, we uphold the order in principle but reduced the said penalty in respect of violation of section 15C and in respect of Section 15A(a) of the SEBI Act - With th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 64 investors. On noticing this aspect, respondent SEBI issued notice to the appellant on 16th February, 2010 under Rule 4(1) of the Adjudication Rules as to why an enquiry should not be conducted against the company and penalty should not be imposed under sections 15C and 15A(a) of the Securities and Exchange Board of India Act, 1992 (SEBI Act). The reply was, however, filed by the appellant on 9th June, 2011. Personal hearing was also afforded to the appellant. After affording reasonable opportunity of hearing to the appellant, SEBI came to the conclusion that the appellant was liable to pay a monetary penalty of Rs. 5,00,000/- of violation of Sections 15C and 15A(a) of the SEBI Act. This was done by the Adjudicating Officer under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iolators should not go unpunished. 4. After hearing both the learned counsel for the parties we are of the considered opinion that the redressal grievance mechanism envisaged under SEBI Act is an important tool in the hands of SEBI to discharge its duties and obligations imposed on it by the Parliament in the SEBI Act, 1992. Section 11 of the SEBI Act categorically says that one of the most important objects of SEBI is to protect the interest of investors and would, undoubtedly include timely redressal of grievances of investors. There can be no dispute with this proposition of law. However, in the present case we note that the company was admittedly been a sick industrial company. It had financial constraints. Its inability to appoint a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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