Markets regulator Sebi has barred two companies -- Arihant Themoware and PCI Chemicals and Pharmaceuticals -- for their failure to secure SCORES authentication despite repeated reminders.
SCORES is the regulator's online complaint redressal mechanism.
A Securities and Exchange Board of India (Sebi) probe found that the companies did not obtain SCORES authentication even after repeated reminders and also failed to redress pending investor complaints in due time.
While 11 investor complaints were pending against Arihant Themoware, PCI Chemicals and Pharmaceuticals had five against it as on August 24, 2016.
"Failure to redress investor grievances by a listed company adversely affects the confidence of investors in the securities market," Sebi Whole-Time Member Rajeev Kumar Agarwal said in two separate orders.
The companies are restrained from accessing the securities market and buying, selling or dealing in securities, directly or indirectly, in whatsoever manner, till they resolve all the investor grievances pending against them, the orders said.
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 mechanism.
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.
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