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BEFORE THE ADJUDICATING OFFICER

SECURITIES AND EXCHANGE BOARD OF INDIA

[ADJUDICATION ORDER NO. SEBI/SRO/SBM/AO/5 OF 2014]

___________________________________________________________________

UNDER SECTION 15I OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT,
1992 READ WITH RULE 5 OF SECURITIES AND EXCHANGE BOARD OF INDIA
(PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY
ADJUDICATING OFFICER) RULES, 1995

In respect of:

M/s Vybra Automet Ltd.
(PAN No. AAACV7261M)
Regd Office & Works: Survey
No 508 & 509, Padamati Somaram Road
Bibinagar- 508 126
Nalagonda Dist Andhra Pradesh
____________________________________________________________________


Background:


1. Securities and Exchange Board of India (hereinafter referred to as SEBI) had
issued Circular No. CIR/OIAE/2/2011 dated June 3, 2011 regarding
commencement of SEBI Complaints Redress System (SCORES) and advising all
companies whose securities are listed on various stock exchanges to comply
with the provisions of the said Circular. In this regard, SEBI again vide Circular
no. CIR/OIAE/1/2012 dated August 13, 2012 advised all companies whose
securities were listed on stock exchanges to obtain SCORES authentication by
September 14, 2012 failing which it was informed through the said circular that
appropriate enforcement action would be initiated against them.

2. It was observed by SEBI that M/s Vybra Automet Ltd. (hereinafter referred to as
"Noticee" or Company), listed on BSE and HSE had failed to obtain the SCORES
authentication within the timeline stipulated under the afore-mentioned Circular
dated August 13, 2012. Thereafter, SEBI had also issued an advertisement dated
October 21, 2012 in the newspapers in respect of the companies, including the
Noticee, who have not obtained SCORES login and advised the companies to
obtain SCORES authentication within 7 days of the advertisement. It was
observed that the advertisement was issued in both English and Vernacular
dailies and specifically the advertisement appeared in the Sakshi dated
21.10.2012 and also in the Deccan Chronicle dated 21.10.2012. However, it
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was noted by SEBI that the Noticee had failed to obtain the SCORES
authentication as advised.

3. In this regard, SEBI vide letter dated July 25, 2011 referred one complaint that
was received against the Noticee and in order to upload the complaint on
SCORES had advised the Noticee to submit certain details/ information as per a
format that was attached along with the afore-mentioned letter. SEBI had advised
the Noticee to submit the information as per the format to create a user name
and password so as to enable the Noticee Company to view and resolve the
investor grievance received against it in the SCORES system. However, the
Noticee has failed to comply with the instructions issued by SEBI and also the
instructions contained in SEBI circular No. CIR/OIAE/1/2012 dated August 13,
2012, which required all companies whose securities are listed on stock
exchanges to obtain SCORES authentication by September 14, 2012.

APPOINTMENT OF ADJUDICATING OFFICER:

4. In view of the aforesaid, the undersigned was appointed as the Adjudicating
Officer, vide an Order dated November 26, 2012, under section 15-I of the SEBI
Act and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by
Adjudicating Officer) Rules, 1995 (hereinafter referred to as Rules) to enquire
into and adjudge under section 15HB of the SEBI Act for the alleged violations of
the instructions issued by SEBI on SCORES and also SEBI circular No.
CIR/OIAE/1/2012 dated August 13, 2012 by the Noticee.


SHOW CAUSE NOTICE, REPLY AND HEARING:


5. A Show Cause Notice bearing ref no. AO/SCN/SBM/EIL/10184/2013 dated April
29, 2013 (hereinafter referred to as the "SCN") was issued to the Noticee in
terms of the provisions of Rule 4 of SEBI (Procedure for holding Inquiry and
imposing penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to
as 'Rules') to show cause as to why an inquiry be not held against it and penalty
be not imposed u/s 15 HB of the SEBI Act for the alleged violations committed
by the Noticee as brought out in the pre-paragraphs. The copies of the
documents relied upon in the SCN were provided to the Noticee along with the
SCN. The said SCN was sent to the address of the Noticee by Speed Post with
Ack due and the same was also duly delivered to the Noticee on May 07, 2013,
which is evident from the proof of delivery on record.

6. The Noticee in their reply to the SCN, which was received by SEBI on May 13,
2013 briefly, stated the steps taken by them to obtain the SCORES ID and further
stated that they have registered with the SCORES on May 30, 2012. In their reply
to the SCN, the Noticee mentioned their login ID and password details and also
submitted a print out of the SCORES screen shot downloaded from their system.


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7. In the interest of natural justice and in order to conduct an inquiry in terms of Rule
4(3) of the Adjudication Rules, the Noticee was granted an opportunity of
personal hearing on February 18, 2014. The said letter dated February 4, 2014
sent to the Noticee intimating them of the personal hearing date was duly served
on the Noticee and the proof of service is available on record. The Noticee did
not avail the opportunity granted to them for the personal hearing.

8. I am of the view that sufficient material / records are available to proceed further
in the matter and hence, I am proceeding with the inquiry based on the
documents and material available on record.


CONSIDERATION OF THE ISSUES AND FINDINGS:

9. I have carefully perused the documents available on record and also the reply
submitted by the Noticee in response to the SCN issued to them. SEBI Circular
no. CIR/OIAE/1/2012 dated August 13, 2012 provides that all companies whose
securities are listed on stock exchanges has to obtain the SCORES
authentication by September 14, 2012 failing which appropriate enforcement
action would be initiated against them.

10. I observe from a letter addressed to SEBI by the Noticee ( letter received by
SEBI on May 13, 2013 ) that they have mentioned that the SCORES login ID was
created by them on May 30, 2012. However, upon examination of the SCORES
records available with SEBI it appears that the SCORES user ID and the
password was created by the Noticee only on February 08, 2013 and the same
was also confirmed by OIAE in their e mail dated 12
th
April 2013. I also note that
there were no pending complaints against the Noticee even before the date of
initiation of the adjudication proceedings against them. In fact, the adjudication
proceedings were initiated against the Noticee on 26
th
November 2012 whereas
the SCORES database indicated no outstanding complaints against the Noticee
as on that date. While I have taken note of the fact that there has been a delay
on the part of the Noticee to obtain the SCORES authentication although efforts
were made by them in this regard, I observe that the default committed by the
Noticee in this regard was unintentional and not significant enough to impose any
penalty on them. It is noted that the default on the part of the Noticee was made
good by them by taking necessary steps to obtain the SCORES authentication.
Importantly, as already brought out above, there were no outstanding complaints
against the Noticee as per SCORES even before the date of initiation of the
Adjudication Proceedings against them. The delay on the part of the Noticee to
obtain the SCORES authentication can therefore be seen as a minor lapse on
their part and the ends of justice will be met if the Noticee is cautioned for the
lapses.




ORDER
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11. In view of the foregoing, I am of the opinion that it would be inappropriate to
impose any penalty on the Noticee and the matter is accordingly disposed of.

12. In terms of Rule 6 of the Adjudication Rules, copy of this order is being sent to
the Noticee and also to SEBI.



Place: Chennai Suresh B Menon
Date: September 30, 2014 Adjudicating Officer

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