Sebi fines 4 firms, disposes proceedings against 21 others

Markets watchdog Sebi today slapped a total fine Rs 7 lakh on four firms for failing to register with the online complaint redressal system within the stipulated time, while it disposed proceeding against 21 other companies.
The firms against which fines were imposed are Anand Motor Agencies, Brownia Business, BDBS Associates and Apex Holdings.
The regulator in April 2013 had directed all listed companies to obtain Sebi Complaints Redressal System (SCORES) authentication within the stipulated time. However, these firms failed to comply with the order.
Thereafter, a letter dated December 2, 2013, was issued to these companies, whereby these firms were once again advised to submit the requisite information regarding SCORES authentication by December 18, 2013.

However, these companies again failed to comply with the direction.
According to Securities and Exchange Board of India (Sebi), Anand Motor Agencies was granted SCORES authentication on February 1, 2016, while Brownia Business got authentication on June 18, 2015.

BDBS Associates has not obtained the authentication so far, however, Apex Holdings received the authentications on February 4, 2016.
A fine of Rs 1.5 lakh was imposed on Anand Motor Agencies, Brownia Business and Apex Holdings. BDBS Associates was fined Rs 2.5 lakh.
"Failure to comply with the directions of Sebi contained in the Sebi circulars and thereafter the directions contained in the letter dated December 2, 2013 amounts to repeated violation of the directions given by Sebi," the regulator said in the cases of Anand Motor Agencies, Brownia Business and Apex Holdings.

Meanwhile, Sebi disposed proceedings against 21 other companies since the requirement under Section 15c of the Sebi Act remains unfulfilled.
Section 15c pertains to allegations that if any listed company or any person who is 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.
The companies against whom proceedings are disposed include Hindustan Biotech, Haryana Sheet Glass Ltd, European Software Alliances, East India Syntex Ltd, Daewoo Motors India Ltd and Druckgrafen India Ltd.

Launched by Sebi in June 2011, SCORES provides a centralised database of all complaints. Online movement of complaints to the listed companies concerned and upload of their Action Taken Reports (ATRs) 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.