NEW DELHI: Market regulator Sebi has barred five companies from the securities market until they resolve all pending investor grievances against them.
The banned companies are Goodearth Financial Services, Ebers Pharmaceuticals, Elegant Pharmaceuticals, Damania Capital Markets and Shree Pomani Metals & Alloys. In addition, Securities and Exchange Board of India (Sebi) has restrained the directors of Damania Capital Markets and Shree Pomani Metals & Alloys from the securities markets.
In five similar-worded orders, Sebi has restrained these firms from "accessing the securities market and from buying, selling or dealing in securities, directly or indirectly, in whatsoever manner, till it resolves all the investor grievances pending against it".
According to Sebi order dated July 17, these companies have not shown any tenacity in resolving the investor grievances in spite of repeated advice of the regulator. The capital markets watchdog noted that some of the complaints were pending unresolved since 2001.
Most of the complaints were related to non-receipt of shares after transfer as well as non-receipt of funds in rights and other public issue.