This Article is From Sep 11, 2014

Pending Investor Complaints Against Companies Dip 16% in August

Pending Investor Complaints Against Companies Dip 16% in August

Pending investor complaints against listed firms dropped by nearly 16 per cent to 541 in August, and the number of companies against which such grievances were recorded also decreased to 21.

In comparison, 642 investor complaints were pending against 29 listed companies as on July 31, according to Sebi's Online Complaints Redress System (SCORES).

As on August 31, 541 complaints were pending for a period of more than 60 days against 21 firms, including Oil & Natural Gas Corporation, Malanpur Steel and Rolex Pharmaceuticals Ltd.

As per Securities and Exchange Board of India directive, listed firms are required to resolve investor complaints within a month of receiving them failing which they would be liable for penal action.

The data includes those entities against whom more than ten complaints are pending for more than 60 days and excludes entities against whom enforcement action has been initiated by Sebi for non-redressal of investor grievances.

Of the total 541 investor complaints pending against 21 companies at August-end, the maximum number of complaints (141) were pending against Malanpur Steel.

There were 104 investor grievances against ONGC, 21 against Rolex Pharmaceuticals and 20 complaints each against Jupiter Bioscience and Midfield Industries.

Acropetal Technologies Ltd and Modern Cement Ltd had 19 grievances each pending against them, while Steel Exchange India had only 18 such complaints.

Among other entities regulated by Sebi, which has set up SCORES for fast-track resolution and monitoring of investor complaints, a total of 54 complaints were pending for over two months against two mutual funds houses and one registrar to an issue/share transfer agent (Karvy Computershare Private Ltd).

The mutual funds included -- Reliance Mutual Fund (16) and SBI Mutual Fund (12).

As many as 26 investor grievances were pending against Karvy Computershare.

Sebi online complaint redressal system, SCORES, lists all entities functioning in the capital market, including listed companies, stock exchanges, merchant bankers and mutual funds.

SCORES, launched in June 2011, provides a centralised database of all complaints, online movement of complaints to the concerned listed companies, online upload of Action Taken Reports (ATRs) by the concerned companies.

It also helps investors view, track and follow up the actions taken on their grievance.