Capital market regulator Sebi has imposed a total of Rs 11 lakh fine on seven companies for not registering with its online complaint system and failing to resolve investor grievances.
In seven separate orders, the Securities and Exchange Board of India (Sebi) has imposed penalties ranging Rs 1 lakh to Rs 3 lakh on these seven firms.
The market watchdog has levied Rs 3 lakh fine on Intercraft, Rs 2 lakh each on Cepham Pharmaceutical and Cepham Organics and Rs 1 lakh each on Golden Proteins, Munak Galva Sheets, Hind Developers and Navin Chemicals Manufacturing and Trading Company, Sebi said in orders dated January 15.
According to the regulator, these firms have failed to resolve investor complaints within stipulated time and made a delay in obtaining SCORES authentication.
"...Noticee (these seven firms) has failed in its duty by not taking SCORES authentication and not resolving the investor grievance pending against it as alleged in the SCN (show cause notice)," Sebi said in similar-worded orders.
In 2012, it had directed all listed companies to get SCORES authentication by September 14 of the same year, failing which they would have to face enforcement action.
SCORES, launched by Sebi in June 2011, provides a centralised database of all complaints. Online movement of complaints to the concerned listed companies and upload of ATRs by the concerned companies are done through this system.
It also helps investors view, track and follow up the actions taken on their grievances.
The online redressal system has significantly helped in reducing the processing time of complaints.
