SAT upholds Sebi order against Jay Bharat Fabrics

The Securities Appellate Tribunal ( SAT ) has upheld Sebi 's order against Jay Bharat Fabrics Mills in a case related to non-redressal of investor grievances.In March, the Securities and Exchange Board of India (Sebi) had slapped a penalty of Rs 300000 on the Gujarat-based company for not obtaining registration with market regulator's online complaint redressal system, SCORES, as well as for failure to resolve pending investor grievances. Jay Bharat had approached SAT, challenging Sebi's rulings on the ground that it is a sick company and is going through rehabilitation process under the supervision of Board for Industrial and Financial Reconstruction ( BIFR )."Various aspects, including the sickness of the company and its poor financial health, have already been taken into consideration by the learned adjudicating officer while imposing a token penalty of Rs 300000," SAT said in a order dated June 11.As per norms, the penalty for non-redressal of investor grievances can go up to Rs 10000000.The order also said, among others, only when Sebi imposed a penalty of Rs 300000 that Jay Bharat has resolved the investor complaints on April 16, 2014.