Mumbai, Jul 10: Sebi has prohibited Star Precision Electronics India and Teem Laboratories from dealing in the capital markets for failing to resolve investors grievances pending against them as well as not getting registered with the regulator’s online complaint redressal system SCORES.
In two separate orders dated July 9, the Securities and Exchange Board of India (Sebi) said that the two companies are restrained from accessing the securities market “till all the investors’ grievances against it are resolved and it obtains SCORES authentication”.
Both the companies had unresolved investors complaints pending since 2004. While Star Precision had 7 investors grievances pending, Teem Laboratories had 20 such cases unresolved. “…The company has not shown any tenacity in resolving the investors? grievances and in spite of repeated advices of Sebi, the said investors’ grievances are still pending, till date,” the market regulator said in the orders.
In August 2012, Sebi had directed all companies whose securities are listed on stock exchanges to obtain SCORES authentication by September 14, 2012.
However, certain companies, including Star Precision and Teem Laboratories, did not obtain SCORES authentication within the time period specified following which a public notice was issued on January 13, 2013, advising them to obtain the same within seven days. Sebi had said that enforcement actions would be initiated against the companies if they fail to comply with the norms.