SEBI slaps fines on 11 companies for not addressing customer grievances
Stepping up surveillance againstinadequate investor redressal mechanism, Sebi has fined 11firms for failing to obtain registration with its onlinecomplaint system and not addressing customer grievances. 2000000 to Rs 400000 on these companies - nearly Rs 29.400000 in all. According to the Securities and Exchange Board of India,these companies had not obtained the registration with itsonline investor redressal system SCORES within the stipulatedtime frame. The companies were also penalised for not resolving thepending investor grievances against them, even after repeatedreminders from Sebi to do so. In 2012, it had directed all listed companies to getSCORES authentication by September 14, failing which they would have to face enforcement action. Among the firms imposed with penalties are Chain Impex(Rs 400000), Kothari Global (3.2000000), Kanika Infrastructureand Power (Rs 1.5000000), Trans India International (Rs 1.50lakh) and Coronet Industries (Rs 1.2000000). Besides, Hatigor Tea Estates, Computech International,Complex Trading Company, Arihant (India), Standard Chrome andKiev Finance were slapped with Rs 300000 fine each. Other than these 11 firms, Sebi had passed an order onTycoon Tea Company wherein it disposed of the charges againstthe firm relating to not getting the SCORES authenticationwithin the stipulated time. As per latest Sebi data, more than 600 complaints werepending against 29 listed companies at the end of July. The entities that have resolved the grievances and thoseagainst whom enforcement actions have been initiated for non-redressal of complaints are excluded from the list. SCORES, launched by Sebi in June 2011 provides acentralised database of all complaints, online movement of complaints to the concerned listed companies, online upload ofAction Taken Reports (ATRs) by the concerned companies. It also helps investors view, track and follow up theactions taken on their grievance. The online redressal system has significantly helpedreduce the processing time of complaints. PTI