SEBI allowed Sabero Organics to get away from redressing 79 pending complaints from its investors by paying Rs6.8 lakh
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has settled a case against Sabero Organics Gujarat Ltd after the company made a payment of Rs6.80 lakh for allegedly not resolving 79 investor complaints pending against it, reports PTI.
In its order, SEBI said that adjudication proceedings initiated against the company are "hereby settled".
SEBI on three separate occasions from 2008-2010 had written to the company asking it to redress 79 pending complaints against it and submit a action taken report (ATR) within the prescribed time.
However, the company did not redress the complaints and failed to submit the ATR as required. Hence, SEBI had initiated the adjudication proceedings.
Pending the adjudication proceedings, Sabero Organics Gujarat had proposed a settlement of Rs25,000 in May 2011 under the SEBI's consent order mechanism.
However, later the company revised its consent terms and offered settlement of Rs6.80 lakh in July, 2012.
The proposed terms were placed before the High Powered Advisory Committee (HPAC) which after consideration, recommended that the case may be settled on payment of the said amount.
SEBI noted that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the company is found to be untrue.
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