Sebi closes case against 16 companies

Capital markets regulator Sebi today disposed of proceeding against 16 companies related to alleged non-compliance with online investor complaint redressal system SCORES.
It was alleged that the firms did not obtain SCORES authentication within the mandated timeframe.
The companies are Rajinder Steels, Rajinder Pipes, Premier Vinyl Flooring, Nova Udyog, Kartar Glass Works, Hindustan Tools & Forgings, Elite Appliance, Electra (India) Limited, Ganges Fertilizers & Chemicals, Ganga Asbestose Cement, JVG Finance, Northland Sugar Complex, Onida Finance Nova Dhatu Udyog, Sakura Seimitsu India and Reinz Talbros.
Sebi found that the companies are under liquidation.
In similarly-worded separate 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 Section 446 of Companies Act, 1956."

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)."

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 is being proposed that the REIT would hold controlling
interest and at least 50 per cent equity in the holding company. The holding company can in turn hold controlling interest and at least 50 per cent equity in underlying SPV.

Another proposed move is to allow the REITs to have up to five sponsors, as against the current norm for maximum three.
The current provision requires that units offered to the public should be at least 25 per cent. This would be aligned with Sebi regulations about the public offer size of 25 per cent, or 10 per cent initially with an eventual raising of public holding to 25 per cent.
One of the major proposals relate to allowing REITs to invest up to 20 per cent in under-construction projects.
Existing regulations require at least 80 per cent of the value of REIT assets should be invested, in proportion to the holding of the REITs, in completed and rent-generating assets.