Following complaints from shareholders of Varun Shipping on non-receipt of dividend declared and non-receipt of interest for delay in dividend in some cases, the Securities And Exchange Board of India (SEBI) has slammed a notice to the company asking promoters to resolve the pending 90 investor complaints within 30 days from the date of the order.
The market regulator has issued this notice on April 24, saying that if the company fails to settle the matter with the investors, promoters of the company shall stand restrained and prohibited from accessing the securities market till the investor grievances pending are resolved.
When contacted, managing director, Yudhisthir Khatau told Business Standard, “We promoters, have brought in fresh equity plus have let go our dividends and have resolved the issue with the investors.”
“We have not used the company’s money at all for this. The entire contribution is from promoters,” he added.
Varun shipping has been passing through difficult financial times since the financial crisis hit in 2008 where the entire shipping industry global as well as domestic was badly hit. The company had declared dividend of 50 paise per share of Rs 10 each for financial year 2011-12 as a token dividend as it was in restructuring and had very good track record of declaring dividends uninterruptedly for past 28 years, said the SEBI notice.