Sebi fines 11 cos for not solving investor complaints

Tags: SEBI, Companies
Stepping up surveillance against inadequate investor redressal mechanism, Sebi has fined 11 firms for failing to obtain registration with its online complaint system and not addressing customer grievances.

In 11 separate orders passed on Tuesday, the market regulator has slapped penalties ranging from Rs 1.20 lakh to Rs 4 lakh on these companies - nearly Rs 29.4 lakh in all.

According to the Securities and Exchange Board of India, these companies had not obtained the registration with its online investor redressal system SCORES within the stipulated time frame.

The companies were also penalised for not resolving the pending investor grievances against them, even after repeated reminders from Sebi to do so.

In 2012, it had directed all listed companies to get SCORES authentication by September 14, failing which they would have to face enforcement action.

Among the firms imposed with penalties are Chain Impex (Rs 4 lakh), Kothari Global (3.20 lakh), Kanika Infrastructure and Power (Rs 1.50 lakh), Trans India International (Rs 1.50 lakh) and Coronet Industries (Rs 1.20 lakh).

Besides, Hatigor Tea Estates, Computech International, Complex Trading Company, Arihant (India), Standard Chrome and Kiev Finance were slapped with Rs 3 lakh fine each.

Other than these 11 firms, Sebi had passed an order on Tycoon Tea Company wherein it disposed of the charges against the firm relating to not getting the SCORES authentication within the stipulated time.

As per latest Sebi data, more than 600 complaints were pending against 29 listed companies at the end of July.

The entities that have resolved the grievances and those against whom enforcement actions have been initiated for non-redressal of complaints are excluded from the list.

SCORES, launched by Sebi in June 2011 provides a centralised database of all complaints, online movement of complaints to the concerned listed companies, online upload of Action Taken Reports (ATRs) by the concerned companies.

It also helps investors view, track and follow up the actions taken on their grievance.

The online redressal system has significantly helped reduce the processing time of complaints.

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