ADJ/UN/6/2003-04
ORDER OF ADJUDICATION PROCEEDINGS UNDER SEBI (PROCEDURE FOR HOLDING ENQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995 AGAINST DR. SURYANIL GHOSH TRUSTEE SOFTEC CORPORATION IN THE MATTER OF INVESTIGATIONS IN THE CASE OF DSQ SOFTWARE LTD.
Under Rule 3 of SEBI (Procedure for Holding Enquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995, Chairman, SEBI, vide his Order dated April 2, 2003 read with Order dated July 24, 2003, appointed the undersigned as Adjudicating Officer in place of Shri Ananta Barua to enquire into and adjudge alleged violation of Section 15 A of the SEBI Act, 1992 Dr. Suryanil Ghosh Trustee Softec Corporation
The proceedings were initiated for alleged violation of failure to comply with following letters/summons issued by SEBI for personal appearance/ production of documents/ submission of information relating to the dealings in the shares of DSQ Software Ltd. by Dr. Suryanil Ghosh Trustee Softec Corporation:
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Letter No./ Date of summons/ letters
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Addressed at
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Letter/summons for personal appearance/production of documents
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Summons dated June 18, 2002
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407/408, GR Complex, Mount Road, Anna Salai, Nandanam, Chennai – 600 035.
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Summons for personal appearance on June 27, 2002
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IES/ID2/RKK/SP/DSQ/12263/2002 dated July 3, 2002 with summons
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Same as above
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Summons for personal appearance on July 9, 2002
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IES/ID2/RKK/SP/DSQ/13457/2002 dated July 18, 2002 with summons
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Same as above
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Summons for personal appearance on July 25, 2002
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Show cause notice under adjudication proceedings were issued at the address as appearing on the summons and sent by hand delivery through the Southern Regional Office of SEBI but was not received in the specified address and the same was thereafter sent by registered post but the letter was returned undelivered with the reason “Resigned in DSQ”. Service of show cause notice once again was attempted without the name of Dr. Suryanil Ghosh by speedpost.
Appreciation of evidence and findings
Summons dated June 18, 2002
No proof of dispatch or delivery is available on record in respect of this summons.
Summons dated July 3, 2002
From the records made available, it is noted that the summons has been acknowledged vide their letter dated July 8, 2002 stating that on the basis of legal advice obtained, the noticee will not fall within the purview of S.11 (2) (i) of the Act as he is not a person associated with securities market and therefore no enquiry or investigation can be conducted in respect of the noticee and requesting to drop the investigation which is without jurisdiction or statutory authority.
Since the summons was acknowledged and a reply given with a request to drop the proceedings, it would be difficult to hold that he has not responded to the summons.
Summons dated July 18, 2002
This summons was issued along with a letter drawing his attention to the judgment of Gujarat High Court in the matter of Karnavati Fincap Ltd. in which SEBI’s power to call for information / documents from a person who is having the relevant information / documents was upheld and advising appearance in person before the investigating authority on July 25, 2002.
However, as per available records, the said summons had been sent by courier and no proof of delivery for the said summons has been provided.
It is seen from para 3.5 of SEBI Chairman’s order dated 4th October, 2004 that the Chairman has noted that the entity is not available at their registered address.
Conclusion
In view of the fact that one of the summonses has been acknowledged and replied and there is no proof for service of other two summonses, no case is made out for penalty under Section 15 A.
USHA NARAYANAN
ADJUDICATING OFFICER
28.10.2004
NOTE: This order could not be served upon the delinquent by personal delivery to him or to his agent or by registered post at his last known address, and therefore, the delinquent, if he so desires, may procure a certified copy of the order from Investigation Department, SEBI on payment of charges as may be applicable (which is currently Rs.5/- per page subject to a minimum of Rs.50/-).