Capital markets regulator Sebi disposed of proceeding against 16 companies related to alleged non-compliance with online investor complaint redressal system SCORES.
It was alleged that the firms did not obtain SCORES authentication within the mandated timeframe.
The companies are Rajinder Steels, Rajinder Pipes, Premier Vinyl Flooring, Nova Udyog, Kartar Glass Works, Hindustan Tools & Forgings, Elite Appliance, Electra (India) Limited, Ganges Fertilizers & Chemicals, Ganga Asbestose Cement, JVG Finance, Northland Sugar Complex, Onida Finance Nova Dhatu Udyog, Sakura Seimitsu India and Reinz Talbros.
Sebi found that the companies are under liquidation.
In similarly-worded separate orders, Sebi's Adjudicating Officer Vijayant Kumar Verma said, "I am of the opinion that the present adjudication proceedings fall under the scope of 'other legal proceedings' used in Section 446 of Companies Act, 1956." Section 446 of the Companies Act states: "When a winding up order has been made or the official liquidator has been appointed as provisional liquidator, no suit or other legal proceeding shall be commenced... against the company except by leave of the (Tribunal)." Launched in June 2011, SCORES provides a centralised database of all investor complaints. Online forwarding 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.
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