Sebi on Tuesday slapped a fine of Rs. 2.2 lakh on Rencal Chemicals for their alleged failure to resolve investor complaints within the stipulated time and non-submission of the Action Taken Report (ATR) with the market regulator in this regard.
The Securities and Exchange Board of India (Sebi) has found that two investor grievances were pending against Rencal Chemicals in the regulator's online complaint redressal system, SCORES, for more than two years, as on February 2013.
The company was asked by the market regulator to resolve the complaints within a stipulated time and submit the ATR for the same which the firm failed to do.
Accordingly, Sebi has imposed "a consolidated penalty of Rs. 2.2 lakh on Rencal Chemicals India Ltd...for the failure to redress the investor grievances within stipulated time and failure to submit the Action Taken Report (ATR). I
Besides, Rencal Chemicals has not obtained the SCORES authentication as on today, as advised by Sebi in January this year to all the companies.
Consequently, Rencal Chemicals failed to obtain the SCORES authentication and could not update the ATR regarding it.
The regulator, in its show cause notice issued in February this year, alleged that Rencal Chemicals has not redressed the two pending investor grievances within the stipulated time inspite of being called upon by Sebi in writing to do so.