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BEFORE THE ADJUDICATING OFFICER

SECURITIES AND EXCHANGE BOARD OF INDIA


(ADJUDICATION ORDER NO: AO/SG-AS/EAD/07/2016)
_____________________________________________________________
UNDER SECTION 15 - I OF THE SECURITIES AND EXCHANGE BOARD OF
INDIA ACT, 1992 READ WITH RULE 5 OF THE SECURITIES AND
EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING INQUIRY AND
IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995.
In respect of:
EnchanteJewellery Limited
Plot no. 3 & 4,
UdyogVihar Phase- IV
Gurgaon
Haryana- 122015
________________________________________________________________
FACTS OF THE CASE
1. Securities and Exchange Board of India (hereinafter referred to as 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 (hereinafter referred to as SCORES). In terms of the said
Circular, all listed companies were inter alia required to view the complaints
pending against them, redress them and submit Action Taken Reports
(hereinafter referred to as ATRs) electronically in SCORES. 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
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by SEBI. For the purpose of generating said user id and password, listed
companies were required to submit the details for authentication to SEBI, in the
format annexed to the said Circular. However, it was observed that
EnchanteJewelleryLimited (hereinafter referred to as 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
dated November 14, 2011 was sent to the Noticee informing about the
commencement of processing of investor 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. Subsequently, one more letter dated January 18, 2012 was sent to the Noticee
reminding the Noticee that it has not submitted the authentication details
required by the said Circular and the aforesaid letter dated November 14, 2011
for implementation of SCORES. The letter advised the Noticee to submit the
said information as per the format in the Annexure enclosed with the said
Circular within 7 days. The information was necessary to create user name and
password which would have enabled the Noticee to view and resolve investor
grievance in SCORES. The letter also advised the Noticee to email soft copy of
its reply to scores@sebi.gov.in. The letter clearly informed that in order to
process the investor grievance on SCORES, the Noticee was required to
submit the aforementioned information, failing which, SEBI may initiate
appropriate action including initiation of Adjudication Proceedings, debarment
from accessing capital markets, prosecution proceedings against the Noticee
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and its directors. The letter also clearly specified that investor grievance lodged
in SCORES would be considered for closing in the system only upon uploading
the ATR in SCORES.
4. 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 four investor complaints were pending
against the Noticee as on August 27, 2012.
5. It was alleged that by not submitting the details for authentication as required
by the Circular and further required by the two letters dated November 14,
2011 and January 18, 2012, Noticee did not obtain the user id and password
which was essential for accessing the complaints pertaining to it, as uploaded
on the SCORES for redressing the investors grievances and subsequent
redressal thereof, within specified time. Thus, it was alleged that Noticee had
failed to redress the investor grievances which renders the Noticee liable for
imposition of penalty under Section 15C of the Securities and Exchange Board
of India Act, 1992 (hereinafter referred to as 'SEBI Act').
APPOINTMENT OF ADJUDICATING OFFICER
6. Shri Praveen Trivedi was appointed as Adjudicating Officer, vide Order dated
22.08.2012 under Section 15-I of the SEBI Act read with Rule 3 of SEBI
(Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer)
Rules, 1995 (hereinafter referred to as Adjudication Rules) to inquire into
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and adjudge under the provisions of Section 15C of the SEBI Act for the
alleged violations committed by the Noticee. Pursuant to the transfer of Shri
Praveen Trivedi, Shri JayantaJash was appointed as Adjudicating Officer and
the said appointment was communicated vide Order dated 18.12.2013.
Subsequently upon the transfer of Shri JayantaJash, the undersigned has
been appointed as the Adjudicating Officer vide Order dated 22.06.2015.
SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
7. A Show Cause Notice dated 30.08.2013 (hereinafter referred to as SCN) was
served on the Noticee. The SCN was issued to the Noticee under the
provisions of Rule 4 (1) of the Adjudication Rules, to show cause as to why an
inquiry should not be held against the Noticee under Rule 4 (3) of the
Adjudication Rules read with Section 15 Iof the SEBI Act for the alleged
violations.
8. The details of 4 investor complaints pending against the Noticee as stated in
the SCN are given below:
S.
No
.

Registrati
on No.

Name of
Complainant

Received
Date

Nature of
Complaint

SEBIE/HY
12/000015
5/1 (P)
SEBIE/HY
12/000015
6/1 (P)
SEBIP/HY
11/000009
0/1 (P)
SEBIP/HY

Bimal Kumar

15-07-2012

Bimal Kumar

15-07-2012

MohitBakliwal

05-07-2011

Non-receipt of
duplicate share
certificate
Non-receipt of
duplicate share
certificate
Non-receipt of
Bonus

Sanjay Kumar

05-07-2011

Non-receipt of

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11/000009
1/1 (P)

Jain

Bonus

9. Noticee vide its email dated 11.09.2013 acknowledged the receipt of the SCN
as received on 05.09.2013 and inter alia replied as follows:

We did not receive SEBIs letter dated November 11, 2011 or reminder
letter dated January 18, 2012. Our non-registration with SCORES was
not willful.

We are a sick industrial company. As a result of paucity of finance, we


have a skeletal staff.

As a sick industrial company, we have been focused in resolving the


complications that have hindered the approval of our Draft Rehabilitation
Scheme. We have experienced first hand the complications that can
arise by getting embroiled in unwarranted litigation. It is inconceivable
that we would willfully default in abiding with any direction from SEBI or
any other Governmental organization or do anything that would put the
revival of the Company at risk.

In order to mobilise working capital for the revival of the Company, the
Company negotiated with a Public Sector Bank to take a portion of its
factory premises on rent. The PSU Bank required the Company to
undertake considerable civil work at the property to bring the premises
in conformity with what the Bank desired. During the said period of
SEBIs two letters, the civil work was in progress and there was
considerable labour at the site. It is quite possible that the letters of
SEBI entrusted to the post office for delivery, if so delivered, were
misplaced or mishandled by the labour / contractor at the site.

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None of the three complainants i.e. Bimal Kumar, MohitBakliwal or


Sanjay Kumar Jain ever addressed any complaint to us.

Prior to SEBIs letter dated 30.08.2013, we did not receive any letter,
intimation or direction from SEBI on the subject of the grievances of Shri
Bimal Kumar, MohitBakliwal or Sanjay Kumar Jain.

The complaint of MohitBakliwal and Sanjay Kumar Jain pertains to nonreceipt of bonus. The Company is a sick industrial company and has not
declared any bonus. The grievances of MohitBakliwal and Sanjay
Kumar Jain are ill founded.

We are in the process of finding out the procedure to register our


Company with SCORES and intend to have the formalities completed
on top priority.

We are in the process of attending to the grievance of Bimal Kumar in


respect to non-receipt of duplicate shares. We are verifying our records
to ascertain the correct position in respect to the shareholding of Bimal
Kumar and intend to have the grievance addressed on top priority.

10. Noticee vide its email dated 13.09.2013 informed that it has submitted its
SCORES application and enclosed a copy of the same along with the mail. A
physical copy of the SCORES application was also being sent to the address
mentioned on the SCORES application form then. Further the Noticee in its
aforesaid email stated as follows:
We seek your assistance in the matter of redressal of the grievance of Mr.
Bimal Kumar. The RTI has informed us that no request for issuance of
duplicate shares was ever received by them from Mr. Bimal Kumar. The RTI
further informs us that as per their records, there is no shareholder by the
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name of Bimal Kumar. The RTI has informed us that to proceed in the matter,
they require a copy of the grievance filed by him with SEBI, which would
contain his particulars i.e., contact information, folio, etc. Would it be possible
for SEBI to provide us with a copy of Mr. Bimal Kumars complaint so that we
may act on the same.
We would also be extremely grateful if copies of the grievances filed by the
other individuals are provided to us so that we may contact them and inform
them that the Company has not issued any bonus.

11. Vide its letter dated 18.09.2013, Noticee submitted its reply to the SCN wherein
it made submissions similar to those made by it vide its email dated 11.09.2013
and further made following additional submission:

13. We submitted our application for registration with SCORES and SEBI was
pleased to provide us with a user name and password. We logged onto the
SCORES website to retrieve the copies of the pending complaints. As per the
SCORES website, no complaints against the company have been received
and no complaints are pending. Printouts of the relevant pages of the
SCORES website are enclosed for your perusal.

12. In the interest of natural justice and in order to conduct an inquiry in terms of
Rule 4 (3) of the Adjudication Rules, the Noticee was granted an opportunity of
personal hearing on 27.10.2015 at SEBI Bhavan, Mumbai vide hearing notice
dated 22.09.2015. A copy each of the complaint details of Shri Bimal Kumar,
Shri MohitBakliwaland Shri Sanjay Kumar Jain was also enclosed with the
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hearing notice and the Noticee was advised to submit additional reply, if any on
or before 20.10.2015.
13. Noticee vide its letter dated 13.10.2015 submitted a detailed reply to the SCN
wherein inter alia it submitted as follows:
E..

3. The Company obtained the registration with SCORES immediately upon


receipt of the notice dated 30.08.2013.

F. A case for levy of penalty under Section 15C of the ACT for failure to
address the said pending investor grievances within the time specified by
the Board is not made out and we make the following submission for your
consideration.

1. None of the four investor grievances mentioned in SEBIs show cause


notice had been uploaded by SEBI on the SCORES website. Screenshots
of the SCORES website on 18.09.2013 showing that no investor
grievances had been received or were pending on SCORES were
submitted to SEBI as proof that no complaints were received or pending
on SCORES as on 18.09.2013.

2. The notice states: Thus, once a complaint against a Company is


uploaded by SEBI in the SCORES,it amounted to calling upon by SEBI to
such Company to redress the investor grievance. As per the notice, the
calling upon by SEBI to redress the investor grievance commences when
the complaint is uploaded by SEBI in SCORES, and therefore as no
grievances had been uploaded on SCORES, the Company had not been
called upon to redress the said grievance.

3. In order to enable a company to redress an investor grievance through


SCORES, SEBI has to first upload the grievance on SCORES. The

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Company could not have redressed the said four investor grievances and
upload the Action Taken Reports as SEBI had not uploaded the said four
investor grievances on the SCORES website. The essential requirement of
the investor grievance being uploaded on the website SCORES was thus
not fulfilled by SEBI.

4. The time specified by the Board for addressing an investor grievance


has to start from the day on which the said four investor grievances were
uploaded on the SCORES website for communication to the Company.

5. As the said four investor grievances had not been uploaded on the
SCORES website, the Company requested SEBI to provide the copies of
the grievances so that the Company could redress the same.

6. The Company followed up with SEBI the matter of obtaining the pending
investor grievances. The Company followed up the matter by email, it
visited the SEBI office,it asked the RTA to help in obtaining investor
grievances, it asked the compliance consultant to help in obtain the
pending investor grievances, etc. The Company was extremely worried
and concerned as the Company was at a crucial stage of revival and was
concerned that a penalty would derail its efforts of revival. The Company
was informed by the SEBI staff, albeit orally, that SEBI was seized of the
matter of locating the pending investor grievances, the pending investor
grievances will be uploaded on the SCORES website as soon as they are
located, the Company will be intimated, and therefore do not keep calling
SEBI in panic as the notice states, and common senses dictates, that the
time to redress the grievance starts when the grievance is uploaded on
SCORES, as a grievance cant be redressed till it is uploaded; so if the
grievance hasnt been uploaded why the panic, and now that the Company
has obtained SCORES registration,it can redress the grievances when the
same are communicated to it after being uploaded on the SCORES
website.

7. The matter rested thereafter. We are surprised and shocked that the
matter has been reopened after a period of 734 days (2 years and 4 days)

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on the pretext that the Company had sought a copy of the grievances, the
grievances are being provided, and therefore the adjudication will
commence.

8. SEBI located the pending investor grievances and uploaded them onto
the SCORES website on January 30. 2015.

9. The investor grievance of Sanjay Kumar Jain pertained to non-receipt of


dividend. The investor grievance was communicated to the Company on
January 30, 2015. The Company uploaded the Action Taken Report on
February 12.2015 that the investor had been informed that the Company
had not declared a bonus or dividend till date. SEBI disposed of the
complaint on February 16, 2015. Thus, the investor grievance was
communicated to the Company on January 30, 2015,and the Company
submitted the Action Taken Report on February 12, 2015, i.e a period of
13 days, and therefore the investor grievance was attended to by the
Company in a timely manner. A copy of the Action Taken History from the
SCORES website is enclosed for your ready perusal.

10. The investor grievance of MohitBakilwal pertained to non-receipt of


dividend. The investor grievance was communicated to the Company on
January 30, 2015. The Company uploaded the Action Taken Report
February 12, 2015 that the investor had been informed that the Company
had not declared a bonus or dividend till date. SEBI disposed of the
complaint on February 16, 2015. Thus, the investor grievance was
communicated to the Company on January 30, 2015,and the Company
submitted the Action Taken Report on February 12, 2015,i.e. a period of
13 days, and therefore the investor grievance was attended to by the
Company within a timely manner. A copy of the Action Taken history from
the SCORES website is enclosed for your ready perusal.

11. The two grievances of Bimal Kumar pertained to non-receipt of


duplicate shares. The details of the communications that took place with
the complainant / SEBI in respect to the said grievances are as follows.

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a)The two investor grievances were communicated to the Company on


January 30, 2015.
b) The Company on 12.02.2015 uploaded the Action Taken Report
whereby Bimal Kumar was informed by the RTA of the formalities for
issuance of duplicate shares. The Company Acted on the said
grievance within a period of 13 days.
c) SEBI on 16.02.2015 requested the Company to send a reminder to
the complainant after 10 days, and a second reminder after a further 10
days in the event that the Complainant does not reply.
d) SEBI received a communication on 27.02.2015 from the Complainant
that he had completed the formalities for duplicate shares in 2010 and
so why should he complete the formalities again.
e) The Company on 11.03.2015 uploaded the Action Taken Report
whereby Bimal Kumar was sent a 2nd reminder to submit documents to
enable the Issuance of duplicate shares.
f) SEBI on 11.03.2015 informed the Company that Bimal Kumar has
stated that he had completed the formalities for issuance of duplicate
shares in 2010 so why should be complete them again. The Company
was asked to clarify.
g) The Company on 21.03.2015 uploaded the Action Taken Report that
the RTA had informed Bimal Kumar that as per its records it had not
received any documents, and it requested Bimal Kumar to submit
copies to enable it to verify the same. (It is pertinent to mention that the
shares for which Bimal Kumar was seeking duplicate shares stood in
the name of a third party, and it was not possible to issue duplicate
shares in Bimal Kumars name without doing the complete due
diligence).

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h) SEBI on 23.03.2015 requested the Company to send another


reminder to Bimal Kumar and upload proof of dispatch on the SCORES
website.
I) The Company on April 9, 2015 uploaded the Action Taken Report that
the RTA on 08.04.2015 sent another reminder to Bimal Kumar to submit
the documents.
j) SEBI on 30.06.2015 disposed of the complaint after taken cognizance
of the fact that the complainant was not submitting the documents.
k) The failure of Bimal Kumar to submit the documents despite repeated
reminders proved that Bimal Kumar was not a shareholder of the
Company and the grievance was false.
l) The Action Taken History of the Bimal Kumar complaints are enclosed
and the same shows that the said grievances were redressed in a timely
manner.

17. In light of fact that the Company uploaded the Action Taken Reports
onto the SCORES website on February 12, 2015 after receipt of the
grievances from the SCORES website on January 30, 2015, the Company
redressed the grievances within the time specified by the Board, and thus
the penalty provisions of Section 15 C of the ACT are not applicable.
There was no violation of the statutory obligation as contemplated by the
ACT, and thus the provisions of Section 15 C of the ACT are not
applicable.

G. Without Prejudice to the fact that Section 15 C of the ACT is not


applicable as the Company redressed the grievances of the investors
within 13 days of the grievances being uploaded on SCORES, thus within
the time specified by the Board, and therefore did not violate any statutory

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obligation as contemplated by the ACT, the provisions of Section 15 J of


the ACT also do not justify the levy of any penalty
1. It is submitted that there was no gain or unfair advantage, and nor
was any loss caused to MohitBakliwal or Sanjay Kumar Jain, as the
Company had not declared any bonus or dividend till date;
2. It is submitted that there was no gain or unfair advantage, and nor
was any loss caused to Bimal Kumar, as it was proved that Bimal Kumar
was not a shareholder and despite the numerous reminders he failed to
submit the documents.
3. The record shows that there has been no repetitive nature of defaults.

14. In response to the hearing notice dated 22.09.2015, Noticee vide its letter
dated 14.10.2015 stated as follows:
The Company has made detailed submissions in its petition, and the
same are self explanatory.
We request you to permit the Company to make oral arguments to the
Adjudicating Officer via Skype. This would assist the Company in saving
resources as the Company is a sick industrial company duly registered with
BIFR. Furthermore, the undersigned Director who will be making the oral
arguments, if permitted by SEBI, suffers from excruciating back pain, and a
long journey is extremely painful.

15. As regardsNoticees request to attend the hearing via Skype, Noticee was
informed vide email dated 15.10.2015 that arrangements through electronic
mode have been made at SEBI, Northern Regional Office, New
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Delhi(hereinafter referred to as NRO) for the Noticee to attend the scheduled


hearing on 27.10.2015 at 11:30 am. Noticee vide its email dated 20.10.2015
stated that its Managing Director, Shri Chand Mehra would be attending the
scheduled hearing.
16. Noticee vide its letter dated 26.10.2015 authorisedShri Chand Mehra,
Managing Director to appear before the undersigned on 27.10.2015. On the
day of hearing, Shri Chand Mehra appeared for the hearing via Voice over
Internet Protocol phone (VoIP) from NRO and made submissions on behalf of
the Noticee. With respect to the personal hearing in the matter, Noticee vide its
letter dated 27.10.2015 submitted as follows:
I appeared for the personal hearing in the matter of M/s EnchanteJewellery
Ltd. at SEBIs Delhi Office and interacted with you through video conference.
In addition to reiterating what we stated in our representation on 13.10.2015,
we humbly submit / confirm as follows:
1.
2. This is to confirm that the Company has not declared a bonus or
dividend since inception of the Company. The certificate of the
Companys Chartered Accountant is enclosed.
3. This is to confirm that in respect to the complaint of Shri Bimal Kumar for
failure to issue duplicate shares in Folio # 8, the said Folio # 8belonged
to M/s Naraini Gems & Investments Ltd. Shri Bimal Kumar did not
complete the formalities or provide any documentation to enable us to
transfer the shares in Folio # 8 to his name and thereafter issue the
duplicate shares. The letter of the RTA confirming thar Folio # 8 stands
in the name of M/s Naraini Gems & Investments Ltd. is enclosed.
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4. This is to confirm that the Company was declared a sick industrial


Company vide BIFRs order dated 25.10.2002. The Company continues
to remain a sick industrial Company.

17. Vide Office Note dated 28.10.2015 certain clarifications / information were
sought from NRO. NRO vide its Office Note dated 16.12.2015 provided the
clarifications / information.
CONSIDERATION OF ISSUES, EVIDENCE AND FINDINGS:
18. After perusal of the material available on record, I have the following issues for
consideration, viz.,
A. Whether the Noticee has violated the provisions of Section 15C of SEBI
Act?
B. If the answer to the above is affirmative, then whether the Noticee is liable
for monetary penalty under Section 15C of the SEBI Act?
C. If the answer to the aforesaid is affirmative, then to determine the quantum
of monetary penalty to be imposed on the Noticee taking into consideration the
factors mentioned in Section 15J of the SEBI Act?
ISSUE 1: Whether the Noticee has violated the provisions of Section 15C
of SEBI Act?
19. The allegation in the matter against the Noticee is that by not submitting the
details for authentication as required by the Circular and further required by two
letters dated November 14, 2011 and January 18, 2012, Noticee did not obtain
the user id and password which was essential for accessing the complaints
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pertaining to the Noticee, as uploaded on the SCORES for redressing the


investor grievances and subsequent redressal thereof, within specified time.
20. Noticee has submitted that it has not received SEBIs letters dated November
14, 2011 and January 18, 2012. When a clarification on the same was sought
from NRO, NRO stated as follows it may be noted that the original file of the
case was transferred at the time of AO appointment Proof of service of the
aforesaid letters is not available on record.
21. It is observed from SEBI Circular No. CIR/OIAE/2/2011 dated 03.06.2011 that
it deals with commencement of SCORES and advises all companies whose
securities are listed on various Stock Exchanges to comply with the provisions
of the said Circular. Vide Circular No. CIR/OIAE/1/2012 dated 13.08.2012,
SEBI advised all listed companies to obtain SCORES authentication by
14.09.2012.

Subsequently

vide

Circular

No.

CIR/OIAE/1/2013

dated

17.04.2013, SEBI advised the companies which were yet to obtain SCORES
user id and password to obtain it within 30 days of issue of the said Circular.
22. It is noted from the submission of the Noticee and the information received
from NRO that the Noticee had obtained SCORES authentication on
18.09.2013.Thus, the Noticee has not obtained SCORES authentication within
the time as specified by SEBI.
23. I note that Honble Securities Appellate Tribunal in the matter of Port Shipping
Company Ltd. Vs. SEBI decided on 29.04.2015 observed as follows:
As held by this Tribunal in case of M/s. Vidarbha Industries Ltd. (supra)
and Rakan Steels (supra) where a listed company fails to obtain SCORES
authentication within the time stipulated by SEBI, then it amounts to violating
the directions of SEBI and in such a case penalty is imposable under
Section 15HB of SEBI Act
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24. I, however, note that instant adjudication proceedings are under Section 15C of
SEBI Act and not under Section 15HB of the SEBI Act.
25. Regarding investor complaints, it is observed that when NRO was requested to
offer their comments on Noticees submission that as on 18.09.2013 none of
the four complaints were uploaded on SCORES website and they
wereuploaded on 31.01.2015, NRO submitted as follows:
all the four complaints were uploaded on the following dates on SCORES
websiteSl. No.

Registration No.

Date of updation / receipt

SEBIP/HY12/0000156/1

15/07/2012

SEBIP/HY11/0000090/1

21/05/2011

SEBIE/HY12/0000155/1

15/07/2012

SEBIP/HY11/0000091/1

21/05/2011

However, the aforesaid complaints were forwarded to the Company on the


dates mentioned in Action taken History (copy enclosed- Flag A), details of
same are reiterated as per table under point 5 below
5.

The status of complaints as per database is as follows, and date of

obtaining SCORES authentication is 18/09/2013.


REGNO

NAME

COMP AGAINST

Comp.
receipt
date

Comp.
disposal
date

Complaint
forwarded
date

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SEBIE/HY12/0000155/1

Bimal
Kumar

EnchanteJewellery 15/07/2012 30/06/2015 30/01/2015


Ltd

SEBIE/HY12/0000156/1

Bimal
Kumar

EnchanteJewellery 15/07/2012 30/06/2015 30/01/2015


Ltd

SEBIP/HY11/0000090/1

SEBIP/HY11/0000091/1

MOHIT
EnchanteJewellery 21/05/2011 16/02/2015 30/01/2015
BAKLIWAL
Ltd
/ PRAMOD
JAIN
SANJAY
KUMAR
JAIN /
PRAMOD
JAIN

EnchanteJewellery 21/05/2011 16/02/2015 30/01/2015


Ltd

26. It is seen from the screen shot of SCORES as on 19.09.2013 submitted by the
Noticee that no complaints were pending against it as on that date. From
NROs submission and the Action History submitted by it, it is seen that the
complaints were indeed forwarded to the Noticee on 30.01.2015.
27. As regards the allegation about failure of the Noticee to redress the investor
complaints, it is observed from para 2 of SEBI Circular No. CIR/OIAE/1/2012
dated 13.08.2012 that all companies against whom complaints were pending in
SCORES were to take appropriate necessary steps within 7 days of receipt of
complaint through SCORES so as to resolve the complaint within 30 days of
receipt of complaint. I also note that instant adjudication proceedings are under
Section 15C of SEBI Act. The provisions of Section 15C of SEBI Act read as
under:
"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
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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."
28. It is noted from records that the Noticee had obtained SCORES authentication
on 18.09.2013 but the complaints were forwarded to it by NRO on 30.01.2015.
Out of four complaints, two complaints had no cause since as per Noticees
submission it has never declared bonus or dividend and it was declared a sick
industrial company vide BIFRs order dated 25.10.2002. The said two
complaints were disposed of by the Noticee on 16.02.2015. For the remaining
twocomplaints(which as per the records are one and the same) of Shri Bimal
Kumar, as per Action History from NRO, Noticee had sent report on
12.02.2015 wherein it stated that ...The transfer agent has informed the
customer of the procedure for requesting duplicate shares and requested the
customer to provide the necessary documentation to enable the Company to
issuer the duplicate shares The complaints were finally disposed of on
30.06.2015 after protracted correspondence with the complainant.
29. In view of the above facts and circumstances of the case and the material
available on record, it is concluded that the Noticee has not violated the
provisions of Section 15C of SEBI Act.
ISSUE 2: Whether the Noticee is liable for monetary penalty under
Section 15C of the SEBI Act, 1992?
30. Since the allegation against the Noticee of not resolving the investor
grievances pending against it has not been established, the Noticee is not
liable for monetary penalty under Section 15C of the SEBI Act.

_____________________________________________________________________
Adjudication Order in respect of EnchanteJewelleryLtd.

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ISSUE 3: To determine the quantum of monetary penalty to be imposed


on the Noticee taking into consideration the factors mentioned in
Section 15J of the SEBI Act?
31. As the Noticee is not liable for monetary penalty in the instant matter, this
issue deserves no consideration.
ORDER
32. In view of my findings noted in the preceding paragraphs, I hereby dispose
of the Adjudication Proceedings initiated against EnchanteJewellery Limited
vide Show Cause Notice dated 30.08.2013.

33. In terms of the provisions of Rule 6 of the SEBI (Procedure for Holding
Inquiry and Imposing Penalties by Adjudicating Officer) Rules 1995, a copy
each of this Order is being sent to EnchanteJewellery Limited having office
at Plot no. 3 & 4, UdyogVihar Phase- IV, Gurgaon, Haryana- 122015 and
also to Securities and Exchange Board of India.

Date: 19.01.2016
Place: Mumbai

SURESH GUPTA
ADJUDICATING OFFICER

_____________________________________________________________________
Adjudication Order in respect of EnchanteJewelleryLtd.

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