As part of tightening the screws on errant companies, the Securities and Exchange Board of India can now impose a penalty of up to Rs 1 crore (Rs 10 million) on companies failing to redress investor grievances.

Armed with powers under the amended SEBI Act last year, the market regulator has directed 24 companies, including Mafatlal Finance, Pal Peugeot and Pentafour Products to redress investors' grievances, a Sebi release said.

It has also appointed an adjudicating officer to pursuer further action in the case of six companies, including Essar Oil.

The empowerment of imposition of penalty on companies has been done under Section 15 C of the SEBI Act, amended last year, for their failure to redress the investor grievances after having been called upon to do so, the release said.

Sebi has accordingly directed 24 companies, including Ace Laboratories, Enkay Texofoods, Lloyds Finance, Mafatlal Finance Company, Pal Peugeot, Pentafour Products, Rossel Finance, Prudential Capital Markets, West Coast Brewers and Distillers, Vikas WSP and Western India Shipyard, to redress investors' grievances.

According to market sources, some of the companies do not exist and directors are not traceable.

Further, Sebi has also appointed adjudicating officer to pursue further action under Section 15 C of the SEBI Act, against six companies for their failure to redress investor grievances after having called upon to do so, it said.

The other companies against whom the officer would pursue further action are Arihant Cotsyn, Malanpur Steel, Ojas Technochem Products, Mukerian Papers and Vatsa Corporation.