sebi:WTM/SKM/EFD1-DRAII/05/2019-20
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Charges held established but proceedings disposed of without any further directions as 10-year prohibition following compulsory delisting was held sufficient to meet the ends of justice
Regulations
- Reg. 24
Parties
- M/s. Gold Multifab Ltd.
Holding
The charges of failure to obtain SCORES authentication and failure to redress pending investor complaints were held established against M/s. Gold Multifab Ltd., but the proceedings were disposed of without any further directions because the company was already compulsorily delisted from BSE with effect from July 2018 and subject to 10-year prohibition under Regulation 24 of the Delisting Regulations.
Full text
Order in the matter of M/s. Gold Multifab Ltd. Page 2 of 6 companies can also upload the ATR by logging in to SCORES by using their SCORES authentication (consisting of user ID and password), which can be obtained by the company after submitting the necessary details to SEBI. Similarly, investors can also upload their complaints and check the status thereof from time to time by logging into SCORES by using their ID and password which they receive after registration with SCORES. The online grievance redressal system facilitates speedy disposal and redressal of investors’ grievances by the listed companies under close monitoring by SEBI.
Order in the matter of M/s. Gold Multifab Ltd. Page 3 of 6 effective resolution of investors complaint. I also note that a letter dated April 30, 2013 was sent to the Noticee, reminding that it had not yet obtained the SCORES authentication and that investors complaint has been pending against the Company. The letter directed the Noticee to take up steps in compliance of the above mentioned circular, failing which appropriate regulatory action against the Company would be initiated.
Order in the matter of M/s. Gold Multifab Ltd. Page 4 of 6 7. I note that a listed company is under an obligation to timely redress all investor complaints against it. I find nothing on record whereby it can be noticed that any action has been taken by the Noticee to take even SCORES authentication, which is the pre-requisite to receive and redress investors’ complaints through SCORES. The Company has not shown any efforts for resolving the pending investor grievance, in spite of repeated reminders from SEBI. Protection of investors’ interest is a key to secure a successful Securities Market, hence listed companies should not adopt such callous approach towards resolving investors’ complaints despite regular interventions by SEBI. The Company has not even responded to show whether any efforts have been taken by it to obtain the SCORES authentication so as to be able to resolve the pending investors’ complaints expeditiously.
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Source: SecMarx — sebi:WTM/SKM/EFD1-DRAII/05/2019-20. 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.