Mumbai: Stepping up action against entities for alleged inadequacy in their investor redressal mechanism, Sebi has penalised 10 companies to the tune of nearly Rs 39 lakh besides barring one firm from the capital markets.
These cases mainly relate to failure in getting registered with Sebi's online complaint redressal system as well as delay in addressing investor grievances. In 10 separate orders, Securities Exchange Board of India (Sebi) has slapped penalties ranging from Rs 1 lakh to 12 lakh on 10 companies, translating into a cumulative amount of Rs 38.50 lakh. The capital market regulator has slapped penalties on Somani Swiss Industries (Rs 12 lakh), Sanderson Industries (Rs 7 lakh) and Platinum Finance (Rs 4 lakh).
Besides, it has imposed a fine of Rs 3 lakh each on S M International, RCS Vanaspati Industries, Moderate Credit Corporation and Monotona Exports. It has also levied Rs 1.50 lakh fine on Dighe Electronics and Rs 1 lakh each on Girnar Fibres and Gopi Appliances. Meanwhile, Sebi has barred Sparkle Foods from accessing the securities market "till all the investors' grievances against it are resolved and it obtains SCORES authentication".
According to Sebi, these companies had failed to obtain registration with its online investor redressal system SCORES and had not resolved investor grievances pending against them despite repeated reminders by the market regulator. Meanwhile, the regulator has also passed orders on three firms -- Norris Medicines, Movilex Irrigation and Ladam Steels, wherein it has disposed off the charges against the firms and their respective directors as they have agreed to resolve pending investor complaints. Sebi, in 2012, had directed all listed companies to get SCORES authentication by September 14 of the same year, failing which it said they would have to face enforcement action.
SCORES which was launched by Sebi in June 2011 provides a centralised database of all complaints, online movement of complaints to the concerned listed companies and 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.
