Advance Lifestyles Ltd. Vs BSE Ltd. (Securities Appellate Tribunal)
Appellant made a representation to the authorities requesting for waiver / reduction of the penalty contending that for not appointing the Company Secretary and two independent directors on the Board / audit committee, the penalty may be waived under the exceptional circumstances as carved out in the circular dated May 3, 2018. The representation was rejected and the appellant was directed to deposit a penalty of Rs. 20,40,000/-.
Having heard the learned counsel for the parties, we find that admittedly, the appellant has violated various provisions of the Listing Regulations. The limited prayer made before us was that due to unforeseen events, the stock exchange should have taken the events as a mitigating factor to waive or reduce the quantum of penalty. In this regard, taxguru.in we find that the exceptions carved out in the circular dated May 3, 2018 relates to certain events which in the instant case was not existing. Further, we find that there no justification or any reason has been given as to why a Company Secretary and the two independent directors could not be appointed. In the absence of any cogent reasons, we do not find any justification to reduce the quantum of penalty.
FULL TEXT OF THE SECURITIES APPELLATE TRIBUNAL MUMBAI
1. For the reasons stated in the application, the delay in filing the appeal is condoned.
