Sebi revises penalty for non-compliance of listing regulations

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Mumbai, Jun 17

Market Regulator, Securities and Exchange Board of India (Sebi) has revised the penalty amount for non-compliance of listing regulations. Sebi in a circular has asked stock exchanges to impose fines in case of non-compliance with certain provisions of Issue of Capital and Disclosure (ICDR) regulations. Delay in completion of Bonus Issue the fine will Rs 20,000 per day of non-compliance till the date of compliance. Sebi said if non-compliance continues for more than 15 days, the company has to pay additional fine of Rs 0.01 per cent of paid up capital of the entity or Rs 1 crore, whichever is less, would be levied. ” Paid up capital for this purpose shall be paid up capital as on first day of the financial year in which the the non-compliance occurred,” it said. Similarly, in case of debt to equity conversion and in convertible securities same amount of penalty will be levied.

For instance, if the companies don’t allot shares on conversion of convertible securities within 18 months or if an issuer doesn’t approach an exchange for listing of equity shares within 20 days from date of allotment. “If any non-compliant listed entity fails to pay the fine, the recognised stock exchange may initiate appropriate enforcement action, including prosecution,” Sebi said. The amount of fine would be credited to the “investor protection fund” of the respective exchange. Sebi has also asked exchanges to disseminate the names of non-compliant listed entities on their website that are liable to pay fine for non-compliance, the amount of fine imposed and details of fines received.

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