The market regulator Sebi today penalised two companies–BTW Industries and GR Magnet–for delaying dematerialisation of securities for several years.
While it imposed a penalty of Rs 40 lakh on BTW Industries, GR Magnet was fined Rs 12 lakh for failing to dematerialise its securities. Dematerialising securities means keeping them in electronic form.
In the case of BTW, the Sebi said there were 1,860 demat requests pending from the National Securities Depository (NSDL) and Central Depository Services (CDSL), involving over 3.30 lakh shares. These requests have been pending since October 2003. In the case of GR, it said 624 demat requests have been pending from January 2004, involving 3.10 lakh shares of this company.
In both the orders, Sebi cited the violation of Sebi rules pertaining to the Depositories Act.
