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2019 (9) TMI 799 - AT - SEBINon furnishing the information pursuant to the summons - Violation of Section 11C(3) read with Section 11(2)(i) of SEBI Act, 1992 - penalty under Section 15A(a) of the SEBI Act, 1992 - HELD THAT:- We find that admittedly the information sought by summons dated December 9, 2014 was eventually supplied after more than one and half years on February 17, 2016 in adjudication proceedings. Prior to that such information was not supplied. Information is required to be furnished to the investigating authority. If information is not furnished, it would hamper the investigation which was precisely being done in the instant case. The alleged irregularities in the trading in the scrips of the appellant Company could not be investigated on account of non-furnishing of the information. Such non-furnishing of the information hampered the investigation and, therefore, penalty becomes leviable. We find that it is not a case where it could be said that there was total non co-operation on the part of the appellant Company. Admittedly, most of the information was submitted though the information as per summons dated December 9, 2014 was furnished only at the stage of hearing in the adjudicating proceedings. Thus, even though information was provided by the appellant Company belatedly, we also find that even after the issuance of the show cause notice in the adjudication proceedings no reply was filed and therefore the violation of the alleged provisions stood admitted by the appellant Company. Thus, we are of the opinion that imposition of penalty is justified. However, in the circumstances since eventually the information was supplied during the pendency of the adjudication proceedings coupled with the fact that the Managing Director of the Company had appeared and cooperated in the proceedings the penalty of ₹ 5 Lakhs appears to be on the higher side. We, accordingly, reduce the quantum of penalty from ₹ 5 Lakhs to ₹ 2 Lakhs.
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