Sebi today imposed Rs 50 lakh fine on Mahadev Industries for failing to resolve over 400 investor grievances and not registering with the capital market regulator's online system to redress complaints.
Securities and Exchange Board of India found that Mahadev had failed to obtain registration with complaint redressal online system SCORES within its mandated timeframe.
Further, Sebi had observed that 423 investor complaints were pending against the company as on March 31, 2015.
More than 250 grievances pertained to non-receipt of shares after transfer, while over 50 were related to non-receipt of dividends or bonus, the regulator said.
"Taking into account the quantum of complaints, period of complaints lying pending, violation involved, non-redressal of the complaints till date and relevant regulatory provisions for imposing penalties, I find that this case deserves maximum monetary penalty," Sebi adjudicating officer Vijayant Kumar Verma said in an order.
"Accordingly a sum of Rs 50 lakh...Would be commensurate with the violations," Verma added.
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.
