sebi:AO/SBM/EAD-1/348/2018
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Facts / Headnote
Penalty imposed on Noticee for failure to redress investor complaints
Provisions invoked
- s. 15
- s. 15C
Parties
- Bafna Spinning Mills & Exports Ltd
Holding
The Noticee, Bafna Spinning Mills & Exports Ltd, failed to redress 26 pending investor complaints within the stipulated time period, violating Section 15C of the SEBI Act, and a penalty of Rs 4,00,000/- was imposed.
Full text
Page 2 of 17 share certificates pursuant to the share split announced by the company. Apart from complaints pertaining to non-receipt of share certificates after share split, there were also other complaints received against the company. As per the information furnished by the concerned office of SEBI i.e Southern Regional Office, SEBI, Chennai, there were 31 (Thirty one) complaints that were pending against the Noticee as on March 04, 2013 in SCORES. As per the information available in SCORES, the Noticee had failed to redress these complaints and also failed to submit the Action Taken Report (‘ATR’) through SCORES in respect of the complaints.
Page 3 of 17 necessary steps to redress the pending complaints within the time frame prescribed by SEBI. In view of the above reasons, adjudication proceedings were initiated against the Noticee, for its failure to redress the investor complaints, under the provisions of Section 15 C of the SEBI Act, 1992 (hereinafter referred to as ‘SEBI Act’). APPOINTMENT OF ADJUDICATING OFFICER
Page 4 of 17 b. Since the Noticee had failed to redress the complaints, SEBI sent another letter dated June 12, 2012 to the Noticee with instructions to redress the pending complaints in SCORES and submit the status report within seven days from the date of receipt of the said letter. Further, SEBI vide letter dated July 19, 2012, advised the Noticee to redress the pending investor grievances received against it within 15 days and submit replies to the clarification sought in SCORES. c. It was observed in the SCN dated August 12, 2013, while assessing the status of the pending investor grievances against the company that as on July 19, 2012, there were 26 investor grievances that were pending against the company. Out of the pending 26 investor grievances, the company submitted the ATRs and upon examination of such ATRs submitted by the Company, it was found that the replies given by the company were not found to be satisfactory. Hence, clarifications were sought from the company vide letter dated July 19, 2012. However, this letter sent to the company returned with the endorsement “No such addressee”. d. Therefore, it was alleged that Noticee has failed to take necessary steps to redress the complaints, which has resulted in the violation of the provisions of Section 15C of the SEBI Act. The list of the pending complaints (31 investor complaints) and the copies of the complaints were forwarded to the Noticee along with the SCN.
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Source: SecMarx — sebi:AO/SBM/EAD-1/348/2018. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.