Sebi imposes Rs 12.5 lakh fine on 6 firms for failing to get SCORES registration

Sebi today imposed a total penalty of Rs 12.5 lakh on six entities for failing to register with the markets regulator’s online complaint redressal system within the stipulated time.

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Sebi today imposed a total penalty of Rs 12.5 lakh on six entities for failing to register with the markets regulator's online complaint redressal system within the stipulated time. (Source: Reuters)

Sebi today imposed a total penalty of Rs 12.5 lakh on six entities for failing to register with the markets regulator’s online complaint redressal system within the stipulated time. While the Securities and Exchange Board of India (Sebi) imposed a penalty of Rs 1.5 lakh each on Avinash Information Technologies, Mardia Copper Products, Reliable Finstock Services, it levied a fine of Rs 2 lakh on Genuine Pharmaceuticals, and Rs 3 lakh each on Sarika Paints and Shukun Construction. It was alleged that being listed on bourses, the firms had failed to obtain Sebi Complaints Redressal System (SCORES) authentication within permitted time and had failed to redress investors’ grievances.

In August 2012, Sebi had directed all listed companies to obtain SCORES authentication by September 2012. Again in April 2013, the regulator had asked the listed firms to obtain the authentication by May 2013. In an order, the regulator said that while Genuine Pharmaceuticals has complied with requirements of the SCORES authentication after much delay in June 2017, the other five firms have consistently failed and neglected to comply with the Sebi directions in this regard and the default continues till date. The regulator also said that Genuine Pharmaceuticals, Sarika Paints and Shukun Constructions have repeatedly defaulted in redressing investors’ grievances. In a separate order, Sebi also fined Packtech Industries Rs 2 lakh for non-redressal of two complaints.

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It was alleged that the firm had failed to redress two investor complaints and also failed to furnish information to Sebi by not filing Action Taken Report (ATR) under SCORES within the specified time. The complaints, filed by Coolraj Sakhlecha and Neeta A Lalcheta, against Packtech Industries in SCORES related to non-receipt of shares. While the complaint filed by Sakhlecha was forwarded by Sebi to the firm in March 2014, the one filed by Lalcheta was delivered to the company in November 2014. “The noticee (Packtech Industries) has not taken any steps for redressal of complaints even after a lapse of more than 3 years in one complaint and 2 years and eight month in another complaint, from the date of receipt by it,” Sebi said in an order.

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