Dear Investor,

We at www.investorhelpline.in have received numerous grievances against companies where trading of securities has been suspended by Stock Exchanges due to non-compliance of the terms of Listing Agreement by the company. Besides providing assistance to investors in redressal of their grievances, investor helpline endeavor is to assist in policy planning for plugging the structural loopholes in the framework. In furtherance of our endeavor, we have taken up the matter with SEBI and in turn, SEBI has formed a committee for suggesting measures for redressal of grievances pending against suspended companies. The committee was headed by Shri M.S. Sahoo, WTM of SEBI and Midas Touch Investors Association was one of its members.

The aforesaid committee has recommended that:

The exchanges shall

• validate the complaints database.

• Prepare a list of valid complaints against the suspended companies which are filing returns with the Registrar of Companies.

• Call upon such suspended company to comply with the Listing Agreement terms and redress pending complaints.

• Call upon the Directors and Compliance Officers of such companies to redress complaints u/s 23C read with section 24 of the Securities Contracts (Regulation) Act.   

The Exchange shall complete the actions stated above by June 30th 2010.

Additionally, the Exchanges have been asked to suggest a standard transparent procedure for invoking and revoking suspension along with timelines for each activity associated from initiation till its suspension for further consideration.

In case you are also facing any problem with respect to a company where securities have been suspended from trading, please file your grievance on our website to help us assist you better and take up the matter with the concerned stock exchange.

Virendra Jain
Director,
Investor Helpline