Justice Vipin Sanghi, before whom the plea was listed for hearing, transferred it to the bench of Acting Chief Justice AK Sikri saying the plea involved larger public interest and should be heard by the bench which usually hears the public interest litigations (PILs).
The plea had been filed by Midas Touch Investor Association (MTIA), a registered society, seeking slew directions to the Securities Exchange Board of India saying that money of thousands of investors are stuck up with 2,048 defaulting firms, barred from trading in National Stock Exchange and Bombay Stock Exchange for not following the listing terms stipulated by the market regulator.
"Direct SEBI to initiate action under Securities Contracts (Regulations) Act, 1956 for non-compliance of listing terms by 203 companies listed at NSE and 1845 at BSE (totalling 2048)," said the petition, which is likely to come up for hearing next week. The MTIA, which runs a helpline for investors, said it has received over 14,000 grievances between 2005 and June 2011.
"The petitioner received over 14,000 grievances from investors. Among these, around 2000 grievances were against 450 companies which were 'suspended' by stock exchanges for non compliance with the listing agreement," it said. The stock exchanges (NSE and BSE) expressed "their inability to assist" in redressal of grievances against suspended companies and advised the society to take up the matter with the SEBI, it said.