Mumbai: Indian shipowner Varun Shipping has resolved shareholder grievances to avoid a trading ban by the Securities and Exchange Board of India (SEBI).
In April Varun had received a direction notice from SEBI, which meant a possible trading ban, after it registered a total of 90 complaints regarding non-receipt of dividends declared.
Varun’s managing director Yudhishthir Khatau told Splash last month 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.
“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,” Khatau said.
In a statement revoking the direction issued in April, SEBI advised Varun to “take utmost care and be vigilant in future, in respect of redressal of investor grievances.”
Varun Shipping shares are up 4.79% today following the announcement.