Sebi closes cases against two firms

New Delhi: Sebi has disposed of cases against two companies — Pegasus Apparels and Haji ManzoorAlam Industries — related to alleged non-compliance with online investor complaint redressal system.

These companies had not obtained SCORES authentication from Sebi within the mandated time frame.

In two separate orders, the regulator’s Adjudicating Officer Suresh Gupta said that since the requirement under Section 15C of the Sebi Act remains unfulfilled, the allegations that the two firms have violated the provisions of this section “is not tenable”.

Section 15C pertains to allegations that if any listed company or any person who is registered as an intermediary, after having been called upon by the Board in writing, to redress the grievances of investors, fails to redress such grievances within the time specified by the Board, such company or intermediary shall be liable to a penalty.

Besides, Gupta said these companies are “not liable for any monetary penalty.

Launched in June 2011, SCORES provides a centralised database of all investor complaints. Online movement of complaints to the listed companies concerned and upload of their Action Taken Reports 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 the processing time of complaints.