SAT upholds the order of Adjudicating Officer, SEBI against SRG Infotech (India) Ltd.

Legal Department

Securities Appellate Tribunal (SAT) vide order dated 05.11.99 dismissed the appeal filed by SRG Infotech (India) Ltd. (SRG), a SEBI registered Registrar to an Issue and Share Transfer Agents and upheld the order of the adjudicating officer, SEBI. The adjudicating officer vide order dated 01.04.99 imposed penalty of Rs. 3 lacs against SRG for its failure to enter into agreements with various issuer companies thereby violating Rule 4(1)(b) of SEBI (Share Transfer Agents and Registrars to an Issue) Rules, 1993 and also circulars issued by SEBI in this regard. Aggrieved by the order of the adjudicating officer, SRG filed an appeal before SAT. SAT in its order has observed that the adjudicating officer has conclusively established the contravention of Rule 4(1)(b) of the said Rules read with Section 15B of SEBI Act in respect of SRG's failure to have requisite agreements with the concerned companies for the services rendered by them as Share Transfer Agents and further held that the lumpsum penalty of Rs. 3 lakhs imposed as against a maximum penalty of Rs. 5 lakhs leviable for each default appears to be a token penalty.