Sebi today directed Varun Shipping Company to resolve pending investor complaints within 30 days, failing which it would be barred from the securities market till the matters are resolved.
Majority of the grievances relate to non-receipt of dividend, which was announced back in February 2013.
Besides the firm, Sebi directions are also applicable on Yudhisthir Dilip Khatau, A K Bhattacharya, Khurshed M Thananwalla, Armin Fali Pardiwala and Praveen Singh. These individuals were directors of the company at the time of declaration of dividend in February 2013.
In an order, the regulator asked the company and these individuals to resolve the complaints of investors within 30 days. In case of failure, these entities would be restrained from accessing the securities market till all the investor grievances pending are resolved.
"It is noted that though substantial steps have been taken to distribute the dividend to non-promoter shareholders, as on April 16, 2015 all the 90 investor complaints were pending on SCORES," Sebi order said.
With regard to 87 complaints, Sebi said it is relevant to note that the company had good track record of dividend payment.
"There is also no dispute as to the fact that after... declaration of dividend, the financial positionof the company was bad and it was incurring consistent losses in subsequent years. Presently, the company is in the process of revival through Corporate Debt Restructuring (CDR) scheme," the order noted.
