Sebi disposes of case against four companies

Sebi today disposed of cases against four firms related to failure to resolve investor grievances as well as not getting registration with its online complaint redressal system, as the entities were in the process of liquidation.
The companies are: Essem Coated Steel (J&K), Rainbow Steels, Indian Magnetics Tapes and Jay Rapid Roller.
Under the Companies Act, when an winding up order has been passed or a provisional liquidator has been appointed, no suit or legal proceedings can be commenced or proceeded with against the firm.
In four separate orders, the regulator noted that as per the show cause notices, the companies had not resolved pending investor grievances against them and had not obtained registration with online complaint system SCORES.

However, the market regulator said that "penalty may not be imposed on a company, if the company is under liquidation/liquidated/vanished".
"Hence, the noticee is not liable to monetary penalty under...Sebi Act," it added.

In two other orders, Sebi has imposed a penalty of Rs 2 lakh on Jai Mata Industries and Rs 1.50 lakh on Sanjay Agro Industries for not resolving investor complaints and not obtaining authentication with SCORES.
As per Sebi norms all listed companies are required to get SCORES authentication, failing which they would have to face enforcement action.
SCORES which was launched by Sebi in June 2011 provides a centralised database of all complaints, online movement of complaints to the concerned listed companies and online upload of Action Taken Reports by the concerned companies.