Sebi penalises Amtek Auto in investors’ complaints case

New Delhi :Capital markets regulator Sebi today imposed a penalty of Rs 5 lakh on Amtek Auto for failing to redress investors’ grievances.

The Securities and Exchange Board of India (Sebi), in an order, said the company has resolved only one out of three investors’ complaints pending against it.

With regard to other two pending complaints, Amtek Auto, in its submission to Sebi, said they have resolved both the complaints.

These complaints were related to non-updation of address/ signature/correction as well as non-receipt of dividend.

“However, after viewing status on SCORES…I fail to concur that dividend was paid to the complainant as scan copy of the dividend warrant sent to complainant or NEFT transfer details, whichever applicable, were not provided by the noticee (Amtek Auto) even after being advised to do so…,” Sebi Adjudicating Officer Vijayant Kumar Verma said.

“In response, the noticee only submitted a screen shot of the payment advice,” it added.
With regard to another complaint, Amtek Auto, in its submission, said “the complainant had inadvertently raised the complaint against the company on SCORES and he has acknowledged through email that the complaint was against another entity whose name is in resemblance to the noticee.”

Whereas, as per action taken history available on SCORES, Amtek Auto has stated that dividend is already credited in the shareholder account.

Consequently, Sebi said it did not find any merit in the submission of the company.

“It is now established that the noticee failed to redress pending investor grievances despite being called upon to do so by Sebi,” the capital markets watchdog said in an order. Accordingly, Sebi has levied a fine of Rs 5 lakh on Amtek Auto.