Sebi slaps Rs 1 crore fine on Classic Global Finance

Mumbai :Market regulator Sebi today imposed a fine of Rs 1 crore on Classic Global Finance & Capital for failing to redress investor complaints within the required time frame.

According to the Securities and Exchange Board of India (Sebi), four complaints against the firm were lying unresolved.

The regulator said that in spite of providing opportunity to the company for personal hearing, there was no response from it and the firm also did not refute the charges.

The company was already registered with regulator’s online complaint redressal system, SCORES, the order said.

Taking note of section 15C of the Sebi Act where the violation attracts the penalty of Rs 1 lakh for each day during which such failure continues or Rs 1 crore, whichever is less, Sebi slapped the fine on Classic Global Finance & Capital.

Sebi said that the penalty has to be paid within 45 days of receipt of this order.

SCORES, launched by Sebi in June 2011, provides a centralised database of all complaints. Online movement of complaints to the concerned listed companies and upload of ATRs by the concerned companies are done through this system.

It also helps investors view, track and follow up the actions taken on their grievances. The online redressal system has significantly helped in reducing the processing time of complaints.

In a separate order, Sebi disposed of adjudication proceedings in the case of Modern Steels Ltd, against whom a complaint was also pending.

Since, the firm had obtained SCORES authentication and the complaint does not fall in the ambit of Sebi, the regulator disposed of the proceedings.