Market regulator Securities and Exchange Board of India (SEBI) on Thursday barred five companies and their directors from trading in the securities market till all pending investor grievances against them are resolved.
The five firms affected by the order are Indo American Credit Corporation, Kenal Oil & Export Industries, Kolar Biotech, Motorol Enterprise and Panjwani Packaging.
“In the matter of non-redressal of investor grievances by the... five companies and their directors... SEBI has passed orders dated December 15, 2010 restraining them from accessing the securities market and prohibit them from buying, selling or otherwise dealing in securities, directly or indirectly, till all the pending investor grievances against the companies are resolved,” SEBI said in a statement.
SEBI had received several complaints against the Ahmedabad-based Indo American Credit Corporation and a total of 85 investor grievances were pending against it as on September 24, 2008, related to various issues. The company was charged with having failed to resolve the pending investor grievances and failure to provide any response to SEBI’s queries.
In the case of Kenal Oil & Export Industries, 64 investor complaints were pending against it and the company had failed to file an Action Taken Report as directed by SEBI.
Similarly, Kolar Biotech, Motorol Enterprise and Panjwani Packaging had 58, 114 and 146 investor complaints against them dealing with various issues, SEBI said.