Securities and Exchange Board of India (SEBI) imposed Rs 1 crore fines on Classic Global Finance & Capital after they failed to re-dress the complaints of investors within the required time period.
According to Sebi, a total of 4 complaints were made against the firm and none of them were resolved. They also said that despite the opportSebi, unity to the company for personal hearing, they didn’t respond and the firm didn’t disprove the complaints as well.
The company has been registered with the online complaint redressal system, SCORES, of Sebi, according to the order.
According to section 15C of the Sebi Act, when the act is violated, the entity will be penalized with Rs 1 lakh per day as such penalties continue or Rs 1 crore, whichever is less. The violation was charged by Sebi on Classic Global Finance & Capital.
The penalty needs to pay within 45 days from the time the order was received, says Sebi.
Sebi has launched SCORES in June 2011. The system serves as a centralized database for complaints. Online processing of complaints to the companies listed in the system and uploading of ATRs by the involved companies are made and completed with the use of this system.
Aside from that, SCORES also serves as a medium for investors to view, monitor, track, and follow up certain actions that are taken on their complaints and grievances. This online redressal system is a big help in reducing the amount of time it takes to process the complaints.
In another order, adjudication proceedings were disposed by Sebi in the case of Modern Steels Ltd, where there was also a complaint pending for action. And since the firm have SCORES authentication and the complaint isn’t under Sebi, the regulator then disposed the adjudication proceedings.