Sebi fines two firms for failing to get SCORES registration

Observes lack of due diligence demonstrated by noticees is a risk to securities market

Capital markets regulator Sebi has slapped a fine totalling Rs 3 lakh on two companies -- Chamong Tea Company and Accurate Investment -- for not registering with the regulator's online complaint redressal system.

In two separate orders, the regulator slapped a fine of Rs 1.5 lakh each on these companies.

Sebi said that "lack of due diligence demonstrated by the noticee (the two firms) is a risk to the securities market and thus loss to the investors to that extent".

The regulator, in April 2013, had directed all listed companies to obtain Complaints Redressal System (SCORES) authentication.

However, these two firms failed to obtain the SCORES authentication.

Thereafter, a letter was issued on December 2, 2013 by Sebi, wherein the regulator asked the two companies to submit the requisite information regarding SCORES authentication by December 18, 2013.

However, these firms once again failed to submit the information.

"The noticee has still not obtained authentication even after three years of issuance of the Sebi circulars. Failure of the noticee to obtain SCORES authentication has deprived the investors of an avenue through which they can seek redressal of their grievance, if any, against the noticee," Sebi said in similar-worded orders

SCORES, launched by Sebi in June 2011, provides a centralised database of all complaints.

Online movement of complaints to the listed companies 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 processing time of complaints.