Mumbai, May, 2019: SEBI vide circular dated May 3, 2018 (ref no. SEBI/HO/CFD/CMD/CIR/P/2018/77) have specified uniform approach i.e. standard operating procedure (SOP) in the matter of levy of fines for non-compliance with certain provisions of SEBI (Listing obligations Disclosure Requirement) Regulations, 2015 (‘listing regulations’).
The National Stock Exchange (NSE) after monitoring the compliance of listing regulations for all its listed entities imposed fines and issued notices to non-compliant companies for quarter ended March 31, 2019 as per above mentioned SEBI circular. The list of non-compliant companies for quarter ended March 31, 2019 are also disseminated by the Exchange on path https://www.nseindia.com/corporates/content/compliance_info.htm
As per above mentioned SEBI circular, the Exchange can levy per day fines as specified in Annexure I of the said circular and freeze the holdings of the promoter and promoter group if non-compliant listed entities fails to comply with the requirement(s) of listing regulations and/or pay fine levied within the stipulated period.
If the non-compliance continues for two consecutive quarters then the Exchange can shift the trading in securities of the companies to specified category wherein trades shall take place on ‘Trade for Trade’ basis and subsequently suspend the trading of companies as per Annexure II of the above mentioned SEBI circular.