Alka India Ltd penalized by SEBI. Market regulator SEBI has imposed a penalty of Rs 25 Lakh on Alka India for failing to redress investor complaints following the merger of Janice Textiles with itself.
The 2 shareholders filed a compliant that they did’nt received shares of Alka India Ltd post amalgamation of companies.
Since, I impose a penalty of Rs 25,00,000… for non-redressal of complaints,” Sebi General Manager and Adjudicating Officer B J Dilip said in an order against the firm.
The regulator said the contention of Alka India that redressal of complaints of non-receipt of shares in exchange of scheme of amalgamation of Janice Textiles was beyond the control of the company “is not acceptable”, as the firm failed to meet the various regulatory compliances laid down by BSE.
Janice Textiles delisted on September 20,2015. The 430 investors have not received amalgamated shares till date. as admitted by Alka India, Sebi said.
As ordered, Janice Textiles delisted,It does.nt have any recourse availabe for these investors to sell the companies shares.
Security Exchange Board of India has taken important steps tocurb the problem of Money Laundering and fraud cases. To take this step SEBI imposed a penalty of Rs. 25 Lakhs as failed to redress the investors complaints as a whole.