Sebi fines Omega Organic for not registering under SCORES

Sebi today imposed Rs 1 lakh fine on Omega Organic Industries Ltd for failing to register under the regulator's online complaint redressal system.
Besides, there was one investor complaint pending against the company.
Securities and Exchange Board of India (Sebi) has directed all listed companies to obtain Sebi Complaints Redress System (SCORES) authentication and also redress the pending investor grievances within the stipulated period, failing which appropriate enforcement action would be initiated against them.
However, the company failed to comply with the direction.
SCORES provides a centralised database of all complaints which helps investors to 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.

Meanwhile, Sebi disposed of proceedings against Claro India Limited with regard to a matter of pending investors' complaints.

According to the order, there were two pending complaints pertaining to not receiving shares after amalgamation of the company.
Sebi said the erstwhile Claro India Limited (CIL) had gone in for a capital reduction in 2004 and the existing shareholders were allotted 1 share for every 5 shares held. The remaining old share certificates held by the shareholders were extinguished by CIL as per the terms of the capital reduction.
Pursuant to the capital reduction of CIL, new share certificates to the shareholders were also issued by the company on June 25, 2004.

As per the records submitted by CIL, both the complainants were not registered shareholders and the share certificates lodged for transfer were invalid, which were cancelled in the hands of the original shareholders consequent to the capital reduction, Sebi said.
In 2011, CIL was amalgamated with Kothari Phytochemicals & Industries Ltd (KPIL).
As the two complainants were not registered shareholders of the erstwhile CIL therefore, the complainants were not entitled to receive any shares of KPIL issued on account of the amalgamation.
"Thus, the allegation leveled against the Noticee (CIL) that it had failed to take necessary steps to redress the grievance of T Shanmugham and Pratik Rajendra Gandhi (the complainants) is without any merit," Sebi said, disposing of the proceedings.