Sebi bars Kaleidoscope Films from dealing in stocks

The Securities and Exchange Board of India (Sebi) today barred Kaleidoscope Films from dealing in stock market for its failure to redress investor grievances and misleading the regulator by filing false information.

The grievances were mainly regarding delay in transfer and dematerialisation of shares of the company.

The Sebi has charged the company and its directors for providing 'incorrect information' with regard to complaints filed by investors.

"It is also surprising to note that in some cases, the redressal date given by the company was prior to the complaint date itself," the regulator said in its order.

"It would be against the interests of the investors to permit such a company and its directors to continue to access or deal in the securities market," it added.

Sebi, on account of the above reasons, barred the company and its directors, namely Prakash B Debar, Smita Mahendra Pandya and Sarju Jayantilal Parikh from accessing the securities market.

It also prohibited them from buying selling or otherwise dealing in securities, directly or indirectly, till all pending investor grievances are resolved and same is confirmed by Sebi.

The market regulator had on March 23, 2011 imposed a penalty of Rs 17 lakh on the company for failure to redressal investor grievances and respond to the notices send by Sebi.

The company, it added, even failed to pay the penalty till date.

As many as 191 investor complaints are pending against the Gujarat-based Kaleidoscope Films as on May 16, 2011, the order said.