BEFORE THE ADJUDICATING OFFICER

SECURITIES AND EXCHANGE BOARD OF INDIA

ADJUDICATION ORDER NO. JJ/AM/AO39/2015
UNDER SECTION 15-I OF SECURITIES AND EXCHANGE BOARD OF INDIA
ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING
INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES,
1995
In respect of:
M/s. Shivam Autotech Limited
(PAN AAJCS7372M)
In the Matter of: Shivam Autotech Limited
_____________________________________________________________________________________________
BACKGROUND
1. Securities and Exchange Board of India (SEBI) came out with a Circular

dated June 03, 2011 dealing with the processing of investor complaints

against listed companies through SEBI Complaints Redress System

(SCORES). In terms of said Circular, all listed companies were inter alia

required to view the complaints pending against them, redress them and

submit Action Taken Reports (ATRs) electronically in SCORES. As the

SCORES is online electronic system, therefore, for the purposes of

accessing the complaints of the investors against them, as uploaded in the
SCORES, listed companies were required to login to SCORES system

electronically through a company specific user id and password, to be

provided by SEBI. For the purpose of generating said user id and

password, listed companies which were yet to obtain SCORES user id and
password, were required to submit the details for authentication to SEBI,

in the format annexed to the said Circular. However, it was observed that
Shivam Autotech Limited (Noticee) did not submit the details to SEBI
which were required to be furnished in terms of the said Circular.

2. In order to further remind the Noticee about the compliance with the

requirements as laid down in the SEBI Circular dated June 03, 2011, a
letter was sent to the Noticee on November 22, 2011 followed by two

letters dated January 11, 2012 and January 18, 2012 were sent to the

Noticee informing about the commencement of processing of investor

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Adjudication Order in respect of Shivam Autotech Ltd.

March 16, 2015

complaints in a centralized web based complaints redress system

SCORES in terms of the Circular and advising the Noticee to send the

information (i.e. details for authentication) as required in the Circular, at

the earliest.

3. As observed from the contents of the Circular, SCORES introduced

electronic dealing of the complaints of the investors, by the respective

companies. Thus, once a complaint against a company was uploaded by

SEBI in the SCORES, it amounted to calling upon by SEBI to such company

to redress the investor grievance. Accordingly, it was incumbent upon
such company to redress the investor complaint. It was observed that two

investor complaints were pending against the Noticee as on August 27,

2012. However, it was alleged that the Noticee failed to redress pending
investor grievance and also failed to obtain SCORES authentication in

spite of being called upon by SEBI to do so thereby violating the

provisions of Section 15C of the SEBI Act, 1992.

4. Shri Praveen Trivedi was appointed as the Adjudicating Officer to inquire

and adjudge under Section 15C of the SEBI Act, 1992, the alleged

violations committed by the Noticee. Pursuant to the transfer of Shri

Praveen Trivedi, the undersigned was appointed as Adjudicating Officer
vide Order dated December 18, 2013.

SHOW CAUSE NOTICE, HEARING & REPLY

5. Show Cause Notice (SCN) in terms of the provisions of Rule 4(1) of SEBI
(Procedure for Holding Inquiry and Imposing Penalties by Adjudicating

Officer) Rules, 1995 (Adjudication Rules) was issued to the Noticee on

October 01, 2013, calling upon the Noticee to show cause why an inquiry

should not be held against it under Rule 4(3) of the Adjudication Rules
read with Section 15I of the SEBI Act, 1992 for the alleged violations.

6. The aforesaid SCN was duly delivered to the Noticee through the
Department of Post. Vide letter dated October 29, 2013 the Noticee
submitted its reply to the SCN and inter alia made the following
submissions:

We humbly submit that we have not received any letter from SEBI as mentioned in
Para 4 and Para 5 of your letter. On the basis of email received from NSE and BSE
for SCORES Authentication on 30-08-12 and 06-09-12 respectively, we have

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Adjudication Order in respect of Shivam Autotech Ltd.

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implemented the SCORES and submitted the SCORES Authentication for obtaining
login and password on 07-09-12.
Since then we have been actively and timely addressing to the complaints of
investors. It may please viewed on the portal that we have taken immediate
steps/actions to resolve the investors complaints.
Further, as mentioned in your letter at Para 6, both the investors complaints have
been resolved as on date. We have addressed the complaints and the details of
current status are as mentioned below:
S.
No.

Registration No.

Name
of
Complainant

1.

SEBIP/DH11/00
00953/1

BISHNU PA DA
DEB

2.

SEBIP/DH11/91
03839/1

RAJNISH ASIJA

Action
Initiated
on
19-Dec-12

Nature of
Complaint

Current Status

Nonreceipt of
Dividend

19-Dec-12

Nonreceipt of
shares
after
Transfer

Case was Disposed

off on 29-Jul-2013
by your official as
no response was
received from the
Complainant.
Case was Disposed
off on 29-Jul-2013
by your official as
no response was
received from the
Complainant.

In view of the above, we would like to state that the Company has complied with
the implementation of SCORES and has addressed each complaint of the investor
immediately.

7. Subsequent to the appointment of the undersigned, vide Notice dated

February 09, 2015 the Noticee was given an opportunity of personal

hearing on March 03, 2015. The said Notice dated February 09, 2015 was

duly delivered to the Noticee on February 25, 2015 through the Northern

Regional Office (NRO) of SEBI. Vide letter dated February 26, 2015 the
Noticee, inter alia, requested for time for personal hearing in the month of

April 2015. However, I am of the opinion that sufficient opportunity has

been provided to the Noticee in consonance with the principles of natural

justice and hence I am proceeding with the inquiry taking into account
the material available on record.

ISSUES FOR CONSIDERATION

8. After perusal of the material available on record, I have the following

issues for consideration, viz.,

A. Whether the Noticee has failed to resolve investor grievances?

B. Whether the Noticee is liable for monetary penalty under Section 15C
of the SEBI Act, 1992?

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Adjudication Order in respect of Shivam Autotech Ltd.

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C. What quantum of monetary penalty should be imposed on the Noticee

taking into consideration the factors mentioned in Section 15J of the
SEBI Act, 1992?

FINDINGS

9. On perusal of the material available on record and giving regard to the

facts and circumstances of the case, I record my findings hereunder.

ISSUE 1: Whether the Noticee has failed to resolve investor

grievances?

10. As already observed, SEBI introduced an online electronic system for

resolution of investor grievances, i.e., SCORES in 2011. For the purposes

of accessing the complaints of the investors against them, as uploaded in
the SCORES, listed companies were required to login to SCORES system

electronically through a company specific user id and password, to be

provided by SEBI. Further, vide letter dated November 15, 2011 and

January 18, 2012 the Noticee was informed about the commencement of
SCORES and the Noticee was advised to send the details for
authentication as required in the Circular. In this regard, the Noticee vide

its letter dated October 29, 2013 has submitted that it had submitted

details for obtaining SCORES Authentication on September 07, 2012.

Regarding the two pending investor complaints, as mentioned in the SCN,
the Noticee has stated that the same were closed in the SCORES database

on July 29, 2013. Subsequently, SEBI has confirmed that the Noticee had

obtained SCORES authentication on September 10, 2012 and had

resolved the pending investor grievances (as mentioned in the SCN) on
July 29, 2013.

11. Since the Noticee had obtained SCORES authentication and had taken

necessary steps of resolving the pending investor grievances before the

issuance of SCN; I hold that the allegation of not resolving investor

grievances, as alleged in the SCN, does not stand established.

ISSUE 2: Whether the Noticee is liable for monetary penalty under

Section 15C of the SEBI Act, 1992?
12. The provisions of Section 15C of the SEBI Act, 1992, read as under:
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Adjudication Order in respect of Shivam Autotech Ltd.

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15C Penalty for failure to redress investors' grievances: If any listed

company or any person who is registered as an intermediary, after
having been called upon by the Board in writing, to redress the
grievances of investors, fails to redress such grievances within the time
specified by the Board, such company or intermediary shall be liable to
a penalty of one lakh rupees for each day during which such failure
continues or one crore rupees, whichever is less.
13. Since the allegation against the Noticee of not resolving the investor

grievance pending against it has not been established; therefore, the

Noticee is not liable for monetary penalty under Section 15C of the SEBI
Act, 1992.

ISSUE 3: What quantum of monetary penalty should be imposed on the

Noticee taking into consideration the factors mentioned in Section 15J
of the SEBI Act, 1992?
14. Since, the Noticee is not liable for monetary penalty in the instant matter,
this issue deserves no consideration.

ORDER
15. In view of my findings noted in the preceding paragraphs, I hereby
dispose of the Adjudication Proceedings initiated against the Noticee vide
Show Cause Notice dated October 01, 2013.

16. In terms of the provisions of Rule 6 of the SEBI (Procedure for Holding

Inquiry and Imposing Penalties by Adjudicating Officer) Rules 1995,

copies of this Order are being sent to the Noticee and also to Securities
and Exchange Board of India.

Date: March 16, 2015

Place: Mumbai

Jayanta Jash
Adjudicating Officer

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Adjudication Order in respect of Shivam Autotech Ltd.

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