Bse To Seek Roc Aid For Investor Redressal

The Bombay Stock Exchange (BSE) will seek the help of the Registrar of Companies (RoC) to speedily resolve the number of pending complaints of investors against listed companies.

The exchange has already submitted a list of 50 companies which have refused to redress investor grievances. These include NEPC, J K Synthetics, Modern Terry Towel and Western Group.

Earlier we used to call the officials of the concerned companies to the exchange to resolve some of the long pending problems of investors. Often, the officials never used to turn up and as the exchange did not have the powers to pull up the companies, the promoters used to get away without any penalties, said Deena Mehta, governing board member. Since the Registrar of Companies is enpowered to prosecute the promoters in the event of irregularities, cases will be resolved at a faster rate, said Mehta. Still the process is slow as many of the companies against whom complaints have been filed are located outside Maharashtra. Hence, the complaints are to be filed with the RoCs in the respective states.

 

The exchange has also set up an Investors Grievances Redressal Committee in a bid to bring down the number of old pending cases of investors against members of the exchange.

Out of 1,424 complaints during 1997, the exchange successfully resolved 1311 complaints, which leaves just 113 pending cases.

Out of the 89,682 complaints by investors against listed companies during 1997, the exchange resolved 46,666 cases during the year.