SAT upholds Sebi order against Motorol Enterprises

The Securities Appellate Tribunal (SAT) has upheld Sebi's orders against Motorol Enterprises in a case related to unresolved investor complaints by the firm.
The capital market regulator Sebi had imposed a penalty of Rs 20 lakh on Motorol Enterprises in 2011 and Rs 2 lakh back in 2005 for not resolving several investors complaints pending against the company.
Subsequently, the company had approached SAT challenging the two orders by Sebi.
In an order dated June 10, SAT said that even after passing of the Sebi order dated May 9, 2005 no steps were taken by the firm to redress the investor grievances.

As the investors complaints increased to 114, a fresh letter was issued to the firm in 2008 asking it to redress investors grievances, which it failed to do subsequently.
The tribunal said the default continued for years together which is "a blatant violation of law and the regulator's orders in this regard".

SAT said: "Inspite of persistent default on part of appellant, (Sebi's) adjudicating officer has taken a lenient view and imposed penalty of Rs 20 lakh...And penalty of Rs 2 lakh which cannot be said to be unreasonable or excessive".
"...Irrespective of being a sick company and irrespective of their being only few employees, appellant was obliged to redress investors' grievances from time to time," SAT said.

On March 25, 2011, Sebi had imposed a penalty of Rs 20 lakh for failure to redress investors grievances and Rs 5 lakh for not furnishing requisite information to Sebi.