Penalty on Non-Compliance of Listing Regulations Revised | CORPORATE ETHOS

Penalty on Non-Compliance of Listing Regulations Revised

By: | June 17, 2017

June 17:  The penalty amount for non-compliance of listing regulations has been revised, Securities and Exchange Board of India (Sebi) has said. The market regulator has directed the stock exchanges to slap penalties in case of non-compliance with certain provisions of Issue of Capital and Disclosure (ICDR) regulations are found.

A report quoting a Sebi circular said that if there is a delay in completion of Bonus Issue the fine will Rs 20,000 per day of non-compliance till the date of compliance. Sebi said that if non-compliance continues for more than 15 days, the company will have to pay an additional fine of Rs 0.01 per cent of paid up capital of the entity or Rs 1 crore, whichever is less.

It added that paid up capital for this purpose shall be paid up capital as on first day of the financial year in which the non-compliance occurred. Similarly, in case of debt to equity conversion and in convertible securities same amount of penalty will be levied.

Sebi further said that if any non-compliant listed entity fails to pay the fine, the recognised stock exchange may initiate appropriate enforcement action, including prosecution. The amount of fine would be credited to the investor protection fund of the respective exchange, it added.

The regulator has also directed the bourses to put up the names of non-compliant listed entities on their website the amount of fine imposed and details of fines received.