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2013 (10) TMI 850 - Board - Companies LawNotice under Rule 4(1) of Adjudication Rules – Proceedings and Penalty u/s 15C and 15A (2) of SEBI Act - 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 – Held that:- The redressal grievance mechanism envisaged under SEBI Act was 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 was 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. 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 the modification of penalty, the order was upheld and the appeal was dismissed - However, the appellant shall pay the said amount within two months from the date of receipt of the copy of this order.
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