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Sebi asks 26 cos to resolve investor complaints fast

The Securities and Exchange Board of India doesn’t seem to have forgotten small investors.

Written by ENS Economic Bureau | Mumbai | Published: February 1, 2009 12:16:28 am

The Securities and Exchange Board of India (Sebi) doesn’t seem to have forgotten small investors. In a move that could lead to the market regulator imposing penalties up to Rs 1 crore or Rs one lakh a day,it has asked 26 companies to expeditiously resolve complaints from investors.

The market watchdog had issued letters to these companies as they failed to either respond or resolve the complaints. “Sebi has been receiving a large number of complaints from investors with respect to these companies. Letters along with the complaints were sent to the companies,advising them to resolve the grievances and submit the status report to Sebi within 30 days,” Sebi said in a statement.

The companies did not respond to Sebi’s letter to resolve the complaints and some of the letters were returned undelivered. “As per Section 15C of the Sebi Act,such companies shall be liable to a penalty of Rs 1 lakh for each day during which such failure continues or Rs 1 crore,whichever is less,” Sebi said.

“If any of these companies fails to redress the grievances and submit the status report of the grievances to Sebi within 30 days from the date of this advertisement,Sebi shall be constrained to take actions against these companies and their Directors,including initiating adjudication proceedings as per Section 15C of the Sebi Act or any other action as deemed appropriate in accordance with the provisions of Sebi Act,” the regulator said.

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