Sebi bars Shamrock in SCORES case, lets off 10 others

Markets regulator Sebi today barred Shamrock Industrial Company for the failure to address investors' grievances and non-compliance with online complaint redressal system - SCORES - while it disposed of proceedings against 10 other firms.
Sebi said these companies had failed to obtained SCORES authentication from the regulator within the mandated timeframe.
According to an order by the Securities and Exchange Board of India (Sebi), there were three complaints from investors pending against Shamrock Industrial as on January 28, 2016.
Barring the company and its directors -- Kamlesh Rameshchandra Khokhani and Kalpesh Rameshchandra Khokhani -- from the securities market, Sebi said the ban will continue till the company resolves all the investor grievances pending against it.

Out of the 11 companies in question, eight are under liquidation.
These companies are Vermani Steel Strips, Varuna Aagroproteins, SSL (India) Limited, Sidco Leathers, SFL Industries, Altos India Limited, Celeste International and Arihant Steel & Alloys.

The Section 446 of the Companies Act states: "When a winding up order has been made or the official liquidator has been appointed as provisional liquidator, no suit or other legal proceeding shall be commenced... Against the company except by leave of the (Tribunal)."
In eight similarly-worded orders, Sebi's Adjudicating Officer Vijayant Kumar Verma said, "I am of the opinion that the present adjudication proceedings fall under the scope of 'other legal proceedings' used in the Section 446 of Companies Act, 1956."

In the case of two -- Tina Finex and Swadeshi Alloys -- the requirements under Section 15C of the Sebi Act were not fulfilled.
The Section 15C pertains to allegations that if any listed company or any person registered as an intermediary, after having been called upon by the board in writing to redress the grievances of investors, fails to do so within the time specified by the board, such company or intermediary shall be liable to a penalty.
Launched in June 2011, SCORES provides a centralised database of all investor complaints. Online forwarding of complaints to the listed companies concerned and upload of their action taken reports are done through this system.

It also helps investors view, track and follow up the action taken on their grievances. The online redressal system has significantly helped in reducing the processing time of complaints.