During the first five months, SEBI also barred Shukla Data Technics, Top Telemedia, International Hometex and Alpine Industries and their respective directors from accessing securities market for not resolving investor grievances
Mumbai: Tightening its noose on the companies that failed to resolve investors' complaints, market regulator Securities and Exchange Board of India (SEBI) has slapped penalties totalling more than Rs21 lakh since the beginning of the current fiscal, reports PTI.
As per the latest information available with the SEBI, the regulator has imposed a total monetary penalty of Rs21.35 lakh so far in 2012-13.
These penalties have been imposed against seven companies for failure to resolve investor grievances. The number of such companies in the current fiscal so far is higher than a total of five firms against whom penal action was taken by SEBI in the entire previous fiscal, 2011-12, and three in the year before.
However, the total penalty imposed in 2011-12 was higher at Rs53.30 lakh and Rs43 lakh in 2010-11. The total penalty in 2010-11 had declined by Rs10 lakh after Securities Appellate Tribunal (SAT) lowered the penalty on one company, Kaleidoscope Films Ltd (formerly known as Gujarat Investment Castings Ltd) from Rs17 lakh to Rs7 lakh.
SEBI said it imposed these monetary penalties against the companies "through adjudication proceedings for their failure to redress investor grievances".
In the current fiscal, the regulator imposed a fine of Rs10 lakh on Earnest Healthcare this month. Prior to that, SEBI had imposed a fine of Rs five lakh against Gujarat Filaments and and Rs10,000 on Gujarat Aqua Industries.
Earlier this fiscal, SEBI had slapped a penalty of Rs75,000 on Raj Irrigation Pipes & Fittings, Rs2 lakh on Satguru Agro Industries and Jord Engineers India each, and Rs1.5 lakh on Simco industries.
Additionally, SEBI in the first five months of the current fiscal had barred four companies--Shukla Data Technics, Top Telemedia, International Hometex and Alpine Industries and their respective directors from accessing securities market for not resolving investor grievances.
The regulator restrained these four companies and their directors "from accessing the securities market and from buying, selling or dealing in securities directly or indirectly, in whatsoever manner, till all the investors' grievances against the company are resolved by them."
In August, SEBI had asked all listed companies to register themselves with its online complaint redressal system -- SCORES -- by 14th September, after which they would be required to resolve all grievances within 30 days of their receipt.
In case, a company is unable to initiate action for redressal of investor grievances within seven days of receipt in SCORES, the regulator could take necessary enforcement actions.
SEBI had launched this online system for handling investor grievances in June 2011.
SEBI decided to discontinue mini derivatives contracts on Sensex and Nifty to deter small investors from this segment
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) said it has decided to discontinue mini derivatives contracts on Sensex and Nifty indices, to discourage small investors from getting attracted to this segment, reports PTI.
The latest move revises SEBI's decision in December 2007 that allowed mini derivative contracts. Such contracts -- having a minimum size of Rs1 lakh -- were allowed on leading indices, Sensex and Nifty.
"With a view to ensure that small/retail investors are not attracted towards derivatives segment, it has now been decided to discontinue mini derivatives contracts on Index (Sensex and Nifty)," SEBI said in a circular.
Directing stock exchanges to implement the latest circular, SEBI said that no fresh mini derivatives contracts shall be issued.
"However, the existing unexpired contracts may be permitted to trade till expiry and new strikes may also be introduced in the existing contract months," the regulator noted.
Derivatives are contracts between two or more entities and their value depends on underlying assets such as stocks.
SEBI slapped a fine of Rs4.50 lakh on Lohia Polyesters for failing to redress investor complaints and imposed penalty of Rs50,000 on the company for failing to submit certain information on SCORES
Mumbai: The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs5 lakh on Lohia Polyesters for failing to resolve investor complaints and for not furnishing required details to the market regulator, reports PTI.
In its order, SEBI slapped a fine of Rs4.50 lakh on Lohia Polyesters for failing to redress investor complaints.
Besides, the market regulator imposed penalty of Rs50,000 on the company for failing to submit certain information including document of authentication required under SEBI's online complaint redressal system SCORES.
The regulator said it is "established beyond doubt that the noticee (Lohia Polyesters) has not redressed the long pending investor grievances and failed to submit the ATR (Action Taken Report) and letters from BSE and stock exchanges as advised by SEBI".
According to the order, the company also failed to submit the required authentication under SCORES (SEBI Complaints Redress System) before the initiation of adjudication proceeding.
Certain investor grievances were pending against the company as on 22 December 2011, SEBI said.
Lohia Polyesters was advised by SEBI to submit letters from BSE and other stock exchanges on which it was listed, stating the status of investor grievances.
However, the order said the company did not redress the investor grievances, failed to submit the ATR and letters from the stock exchanges.