WTM/RKA/EFD/47/2016

BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA

ORDER
UNDER SECTION 11B OF THE SECURITIES AND EXCHANGE BOARD OF
INDIA ACT, 1992
In respect of (1) Transcon Research and Infotech Limited and its directors namely, (2)
Shri Ashok Agarwal, (3) Shri Sanjay Kumar Sharma, (4) Shri Ashish Sawarmal Agarwal
and (5) Ms. Sangeeta Shekhar Shetty
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1. Transcon Research and Infotech Limited (hereinafter referred to as Transcon / the
company) is a company incorporated under the Companies Act, 1956. SEBI vide its circular
no. CIR/OIAE/1/2012 dated August 13, 2012 directed all companies whose securities are
listed on stock exchanges to obtain SEBI Complaints Redress System (SCORES)
authentication by September 14, 2012 and to take appropriate necessary steps within seven
days of receipt of complaints through SCORES, so as to resolve the complaint within thirty
days of its receipt.
2. However, since certain companies including Transcon did not obtain SCORES authentication
within the time period specified in the aforementioned circular, a public notice was issued on
January 13, 2013, advising inter alia the companies to obtain SCORES authentication within
seven days from the date of the advertisement, failing which SEBI would be constrained to
initiate appropriate enforcement actions. However, the company still failed to obtain
SCORES authentication. It was also observed that one investor complaint was pending
against the company.
3. Since the company did not obtain SCORES authentication and failed to redress one investor
complaint, SEBI issued Show Cause Notices (SCNs) dated March 28, 2013 and April 18, 2013
to the company and its directors viz. Shri Ashok Agarwal, Shri Sanjay Kumar Sharma, Shri
Ashish Sawarmal Agarwal, respectively calling upon them to show cause as to why suitable
directions including direction to restrain it from accessing the securities market for a specified
period should not be passed under section 11B of the SEBI Act. Subsequently, SCN dated
October 28, 2014 was issued to one more director, namely, Ms. Sangeeta Shekhar Shetty.

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In the matter of Transcon Research and Infotech Limited
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4. Opportunity of personal hearings was granted to the company and its directors on November
24, 2015. The notice to this effect was issued on dated October 21, 2015. Mr. Ashok Agarwal,
Director of Transcon appeared and submitted that the company had written to the investor
complainant for details on the complaint but the investor complainant has not yet replied. He
further submitted that the company intends to redress the investor complaint and they are
working in this direction. Mr. Ashok Agarwal was advised to submit reply to the SCN issued
in the matter. The company vide its letter dated December 21, 2015 inter alia submitted that:
(i) The investor had claimed that he had lodged the share certificate for transfer in his name
but the company or the RTA never received the share certificate from the said investor.
(ii) The company had requested the complainant to provide the following details in respect to
share certificate lodge for transfer:
(a) Proof of dispatch the certificate e.g. courier receipt/Registered A. D. receipt /
Speedpost receipt etc.
(b) Photo copy of share certificate or transfer deed;
(c) Contract note or purchase bill of shares from broker.
(iii) The investor had failed to provide any of the details.
(iv) The company had also sent the final reminder for providing the above detail to the
complainant.
(v) The company had communicated with the present shareholder of the company to know
whether he had sold the shares or still in his procession. Reply was awaited for the same.
5. It has been noted that the company uploaded in SCORES copy of a letter dated February 24,
2014 (along with dispatch proof) addressed to the complainant stating that it did not receive
any share certificate for transfer. Vide the aforesaid letter, the company also sought from the
complainant details of the investors certificate and details of its dispatch. The company
further uploaded an email dated November 12, 2014 addressed to the complainant wherein it
referred to two letters dated May 20, 2014 and July 25, 2014 vide which it apparently sought
certain documents from the complainant. Accordingly, SEBI advised the company on
November 13, 2014 vide SCORES to submit dispatch proofs of the letters dated May 20,
2014 and July 25, 2014 addressed to the complainant. The company was also advised to send
an email to the complainant explaining in details the procedure and documents required.
6. However, now it has been observed that the company has dispatched the transferred 800
share certificates to the investor complainant on March 03, 2016 and has filed Action Taken
Report. The complaint has been accordingly resolved. Further, SEBI has observed that the
company had obtained SCORES authentication on May 13, 2013 and there is no other
investor complaint pending on SCORES against the company.
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In the matter of Transcon Research and Infotech Limited
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7. Considering the above facts and circumstances of the case, I am of the view that there is no
need to pass any direction under section 11B of the SEBI Act, 1992 against Transcon
Research and Infotech Limited and its directors, as contemplated in the SCNs issued to them.
The SCNs are accordingly disposed of.

th

Date: April 13 , 2016

Place: Mumbai

Sd/RAJEEV KUMAR AGARWAL

WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA

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In the matter of Transcon Research and Infotech Limited
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