Regulator Sebi has imposed a fine of Rs 2.5 lakh on JSW Steel for failing to redress an investor complaint within the prescribed time limit.
"The noticee (JSW Steel), being a listed company failed to redress the complaint satisfactorily even after repeated complaints by the complainant for the same complaint," the Securities and Exchange Board of India (Sebi) said in an order.
According to Sebi, one investor complaint was pending against JSW Steel as on March 25, 2015 related to non-receipt of shares after transfer.
The complainant had bought physical shares of the firm off market from one Jaichand Shah who had got possession of the shares but was not the rightful owner of the scrips and had sold them to the complainant.
When the complainant lodged the shares for transfer, the registrar and transfer agent refused to transfer the shares and returned the original transfer deed and copy of share certificate to the complainant through a letter dated February 9, 2010 requesting him to approach the seller for settlement.
The complainant, instead of approaching the seller for settlement, chose to pursue the matter with JSW Steel through Sebi.
In a meeting conducted by Sebi on January 11, 2016, the firm produced documentary evidence to the complainant, including the application copy of the genuine shareholder in the IPO, following which the complainant got convinced and was advised to settle the matter with the seller and the complaint was disposed of on January 22, 2016.
"The noticee has not placed on record any evidence on the steps taken by it to redress the complaint," Sebi said.
"Only after Sebi calling a meeting with the complainant and the noticee together, the complainant was satisfied with the documentary evidence shown to him by the noticee and also application copy of the genuine shareholder was shown to him and thereafter the case was disposed of on January 22, 2016," it added.
The regulator further said that the complainant was filing same complaint in Sebi Complaints Redressal System (SCORES) since the years 2011, 2012, 2014 and 2015.
"Thus it is evident that if the noticee would have been serious at all in speedy redressal of investor complaints it would have shown/ given the documents way back in 2011 which it had shown to the complainant only after Sebi called a meeting with the complainant and the noticee together and the complainant would not have complained again," Sebi said.
The regulator noted that it was only due to Sebi action the investor was satisfied and the complaint was disposed of after a delay of around one year and two months.
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