Sebi slaps Rs 7 lakh fine on 3 firms in investor complaint case

  • PTI, Mumbai
  • Updated: Nov 03, 2014 15:16 IST

Market regulator Sebi has fined penalties totalling Rs 7 lakh on three firms for failing to obtain registration with its online complaint system as well as not resolving pending investor grievances.

The securities and exchange board of India (Sebi) has slapped a penalty of Rs 3 lakh on Alang Marine Ltd and Rs 2 lakh each on Asian Films Production and Distribution Ltd and Kukar Sons (Indo French) Exports Ltd in three separate orders dated October 31.

According to the regulator, these firms have failed to resolve investor complaints within stipulated time and made a delay in obtaining SCORES authentication.

Besides, all the three firms had failed to submit the ATR (Action Taken Report) to the regulator with respect to investor complaints.

In similar-worded orders, Sebi said it has imposed the "penalty for delay in redressal of investor grievances within stipulated time and... for delay in obtaining SCORES authentication & delay in submission of ATR by the company."

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

SCORES, launched by Sebi in June 2011, provides a centralised database of all complaints. Online movement of complaints to the concerned listed companies and upload of ATRs by the concerned companies are done through this system.

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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