Sebi has imposed a total penalty of Rs 7 lakh on SS Forgings & Engineering for alleged failure to resolve investor complaints and non-submission of the Action Taken Report (ATR) with market regulator in this regard.
Securities and Exchange Board of India (Sebi) has found that two investor grievances were pending against SS Forgings in the regulator's online complaint redressal system, SCORES, for more than two years, as on January 2013.
SS Forgings was asked by the market regulator to resolve the complaints within a stipulated time and submit the ATR for the same which the firm failed to do.
"...the noticee (SS Forgings & Engineering) has neither redressed the investor grievances within stipulated time, inspite of being called upon by Sebi repeatedly in writing to do so nor it has submitted the ATR," Sebi said in its order dated September 30.
Accordingly, the regulator has slapped a fine of Rs five lakh on SS Forgings for non-redressal of investor grievances and another Rs two lakh for non-submission of the ATR.
"...hereby, impose a consolidated penalty of Rs 7 lakhs on SS Forgings & Engineering Ltd in terms of the provisions... of the Securities and Exchange Board of India Act,1992 for the failure to redress the investor grievances within stipulated time and failure to submit the ATR," Sebi said.
As per Sebi's show cause notice, it was alleged that SS Forgings had not responded to the regulator's three letters between January-March 2013 which asked the firm to redress the two investors complaints within 30 days and submit an ATR.
The regulator also observed the company's submission that the complaints were resolved "do not hold true".
"It has been confirmed by the OIAE (Office of Investor Assistance and Education) via e-mail dated September 30, 2013 that the said complaints are still pending in SCORES," Sebi said.