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2015 (6) TMI 73 - AT - Companies LawPenalty under section 15C of the Securities and Exchange Board of India Act, 1992 - Failed to obtain SEBI Complaints Redress System (SCORES) Login ID and the password within time stipulated in the Circular dated 13.08.2012 - Held that:- It is only after SEBI notice dated 21.03.2014 the appellant chose to apply for and obtain SCORES registration on 05.04.2014. Fact that the appellant on receipt of notice took immediate steps to obtain SCORES Login ID and password and also took steps to resolve the investor grievances immediately thereafter would not obliterate the inordinate delay on part of the appellant in applying for and obtaining SCORES Login ID and password. If the appellant had obtained the SCORES Login ID and password within time stipulated by SEBI then the appellant could attend to the investor grievance much earlier. Therefore, it is apparent that time and again the appellant has failed to obtain the SCORES registration within the time stipulated by SEBI and thereby the appellant has failed to resolve the investor grievances within the time stipulated by SEBI. Fact that there was only one investor grievance and the fact that appellant took steps to resolve the same immediately after receiving the show cause notice from SEBI does not wash out the inordinate delay in taking the first step under SCORES i.e. obtaining Login ID and password and thereafter resolve the investor grievances within the time stipulated by SEBI. In these circumstances, failure to obtain SCORES Login ID and password for redressing the investor grievances within the time stipulated by SEBI would constitute violation of Section 15C of SEBI Act. For violating provisions contained under section 15C of SEBI Act, penalty is imposable at the relevant time was ₹ 1 lac per day during which the failure continues or ₹ 1 crore whichever is less. In the present case, failure on part of the appellant to obtain SCORES Login ID and password is more than one and half year and therefore the penalty imposable would be ₹ 1 crore. However, after taking all mitigating factors into consideration the adjudicating officer has imposed nominal penalty of ₹ 1 lac on the appellant which cannot be said to be excessive or arbitrary or unreasonable. Thus, no case is made out to interfere with the order passed by the adjudicating officer, wherein imposing nominal penalty of ₹ 1 lac is imposed on the appellant. - Decided against the appellant.
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