ADJ/UN/10/2003-04
ORDER OF ADJUDICATION PROCEEDINGS UNDER SEBI (PROCEDURE FOR HOLDING ENQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995 AGAINST NEW VISION INVESTMENT LTD. 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 New Vision Investment Ltd. The proceedings were initiated for alleged violation of failure to comply with following letters/summons issued by SEBI for production of documents/ submission of information relating to the dealings in the shares of DSQ Software Ltd. by New Vision Investment Ltd.:
|
Letter No./ Date of summons/ letters
|
Addressed at
|
Letter/summons for personal appearance/production of documents
|
|
Letter No. IES/ID2/ RKK/SP/41168/2001 dated December 1, 2001
|
Happy World Home, Sir William Newton Street, Port Lois, Mauritis.
|
Letter to furnish information before December 7, 2001
|
|
IES/ID2/RKK/SP/DSQ/12263/2002 dated July 4, 2002 with summons
|
66, Montpelier Rise, Wembley, Middlesex, U.K.
|
Summons for production of documents by July 10, 2002
|
|
Letter No. IES/ID2/ RKK/SP/16748/2002 dated August 28, 2002
|
Same as above
|
Reminder letter for production of documents by September 6, 2002
|
Show cause notice under adjudication proceedings was issued and first sent to New Vision at Mauritius address. In response, a letter was received from Ocra Worldwide stating that “we do not seem to have this company on our roll”. On checking up at Ocra website, it is noted that OCRA Mauritius, established in 1995, is a member of OCRA Worldwide, which has over 27 years of experience in facilitating offshore and international business with 15 offices and over 200 staff around the world. OCRA Mauritius has been providing services to clients since 1995 and administers over 1,000 client companies. They help in setting up GBCII (Tax Exempt) and GBCI (Tax Resident) companies, and structure GBCI companies to access Mauritius' extensive tax treaties. Thus, the address at which the first letter was sent apparently belongs to a service provider who helps in setting up companies.
Thereafter show cause notice was sent at the UK address by speedpost. The fate of delivery of the letter is not known even though a letter was written to the post office seeking status.
In the meantime, Investigation department of SEBI was requested to provide proof of delivery for issue of summons. In reply, it was stated that the letters were sent through Elbee Couriers who are no longer on SEBI’s contract and that Investigation Department has sent a note to General Services Department for obtaining proof of delivery. The same status was repeated on follow up from time to time, both orally and in writing.
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.
In view of the fact that there is no proof for service of summons and also due to inability to serve show cause notice on the entity under the adjudication proceedings, no case is made out for penalty under Section 15 A.
USHA NARAYANAN
ADJUDICATING OFFICER
27.10.2004
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/-).