SEBI bans 4 companies in investors' complaint case; slaps fine on 1

PTI
Published Oct 16, 2015, 11:10 pm IST
Updated Mar 27, 2019, 11:18 am IST
The online system has significantly helped in reducing the processing time of complaints
Securities and Exchange Board of India (SEBI)
 Securities and Exchange Board of India (SEBI)

New Delhi: Markets regulator SEBI has barredfour firms -- Pittie Finance, Prime Petro Products, Rusoday & Company and Ratna Drugs -- from the capital markets till they resolve all pending investors' grievances. These entities would also be required to get their SCORES (SEBI online Complaints Redress System) authentication. In separate orders today, the Securities and Exchange Board of India (SEBI) has restrained the four firms from the capital market till they obtain SCORES registration and all pending investor grievances are resolved. As per Sebi, 14 investors' complaint were pending against Prime Petro Products, Rusoday & Company (11), Pittie Finance (4) and Ratna Drugs (1).

"Failure to redress investor grievances, by a listed company adversely affects the confidence of investors in the securities market," the orders said. While SEBI has slapped a fine of Rs 2 lakh on Hitkari Industries for failing to obtain registration with SCORES as well as not resolving pending investors' grievances, a case has been disposed of against Suprapti Plastics in the matter of investor complaint as the company is under liquidation.

 

Since the company is under liquidation and has been ordered to be wound up in 2012, "the investor complaints have been treated as closed and disposed of in SCORES", SEBI said. The markets watchdog, in August 2012, had asked all listed companies to get SCORES authentication by September 14 of the same year, failing which 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 by the concerned companies. It also helps investors view, track and follow up the actions taken on their grievances. The online redressal system has significantly helped in reducing the processing time of complaints. 

 

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