Varun Shipping clarifies stance on investor grievances

Mumbai: Beleaguered Indian shipowner Varun Shipping has written to stock market regulator Securities & Exchange Board of India (SEBI), clarifying its position on long-pending dividend payment to its investors, a matter on which it had been threatened with an indefinite ban from accessing the stock market.

Varun’s managing director Yudhishthir Khatau told Splash that the company had not only cleared the dividend payment of INR0.50 on an INR10 ($0.16) share for the financial year 2011-12, but had also paid up the interest for delay in the dividend payout.

“The matter stands cleared from our end, and we have written to the regulator accordingly,” Khatau said. “We have made a dividend payout of INR45.6m, using the promoters’ contribution entirely, and not the company’s money.

“We have also paid up the fine of INR500,000 that we were hit with by SEBI for our alleged delay in taking steps to resolve investor grievances within the stipulated time frame.”

Shirish Nadkarni

Shirish Nadkarni is a management consultant and freelance international journalist, who has been writing on all spheres of Indian business for the past three decades for a number of reputed overseas publications. An avid sportsman, Nadkarni has represented India in international veterans' badminton since 1997, and was the 55+ age group doubles world champion in 2005.
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