Sebi slaps Rs 5 lakh fine on Kanel Oil & Export Industries

Act

Sebi has slapped Rs 5 lakh penalty on Kanel Oil & Export Industries for alleged delay in redressal of investor grievances as well as in filing of the status report as directed by the market regulator.

"...hereby impose a consolidated monetary penalty of Rs 5 lakh on the noticee, namely Kanel Oil & Export Industries Ltd for violation of Section 15C and 15A (a) of the SEBI Act," Sebi (Securities and Exchange Board of India) said in its order dated December 6.

Section 15A of the Act pertains to penalty for failure to furnish information, return, etc and Section 15C relates to penalty for failure to redress investors' grievances.

The regulator said it had received 64 investor grievances pending against the company as on September 24, 2010.

However, Kanel Oil & Export Industries had resolved the investor complaints but there was inordinate delay on the part of the company in doing so, attracting penalty, Sebi said.

Earlier in 2003, Sebi had restrained the company and its directors from accessing the securities market and prohibited the from trading in the market directly or indirectly for non-redressal of investor grievances.

Besides, the regulator in 2011 had imposed a penalty of Rs 3 lakh on the company for delay in dematerialisation of its shares.

"Therefore, it is established that the default of the noticee (Kanel Oil & Export Industries) in redressing investor grievances is repetitive in nature," Sebi said in its latest order.

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