Kumar Rajaratnam, - (1.) THE appeal is taken up for final disposal with the consent of both parties.
(2.) The appeal is against the order dated 14/02/2005 of Adjudicating Officer appointed by SEBI by order dated 30/09/2004. The Adjudicating Officer has passed the order against the appellant which inter alia reads as under: "19. In view of the fact that M/s. Nath Seeds Limited have not complied with 53A of the SEBI (Depositories and Participants) Regulations, 1996 by failing to appoint a common share agency for their demat and physical shares under the provisions of the said Regulation, in exercise of the powers conferred upon me under Rule 5 of the SEBI (Procedure for Holding Enquiry and Imposing Penalty by the Adjudicating Officer) Rules, 1995, and in the interest of justice, equity and good conscience I think it appropriate to levy a penalty of Rs. 75,000/- (Rupees seventy five thousand only) on M/s. Nath Seeds Ltd.," Being aggrieved by the above impugned order the appellant has filed this appeal dated 08/04/2005. The facts of the case is that the Adjudicating Officer was appointed to enquire into and adjudge the alleged contravention of Regulation 53A of the SEB (Depositories and Participants) Regulations, 1996 ('said Regulations') read with Section 15HB of the SEBI Act, 1992 ("said Act") by the appellant in the matter of their failure to appoint a common share agency for handling share registry work both for the dematerialized and physical securities.
(3.) THE show cause notice was issued on January 12, 2004 by the respondent in terms of Rule 4 of the SEBI (Procedure for Holding Enquiry and Imposing Penalty by the Adjudicating Officer) Rules 1995 ("the Rules") wherein the appellant was asked to show cause as to why the enquiry proceedings should not be held against them for alleged violations of the provisions of Regulation 53A of the Regulations and as to why penalty should not be imposed upon them under Section 15HB of the Act. According to the respondent the appellant failed to respond to the show cause.;