(FE)
Putting in place a stronger mechanism to check non-compliance of disclosure regulations, Sebi today announced imposition of penalty of up to Rs 1 crore on companies and initiating enforcement action, including prosecution. The Securities and Exchange Board of India (Sebi) said that recognised stock exchanges would use imposition of fines in case of non-compliance with certain provisions of Issue of Capital and Disclosure (ICDR) Regulations. In a circular, the regulator has asked exchanges to impose a fine of Rs 20,000 per day on companies that delay the completion of bonus issue, do not approach the bourse for listing of equity shares within 20 days from allotment and fail to allot the shares on conversion of convertible securities within 18 months.
If non-compliance continues for more than 15 days, an additional fine of 0.01 per cent of paid up capital of the company or Rs 1 crore, whichever is less, would be imposed. Paid-up capital for this purpose would be the paid up capital as on first day of the financial year in which the non-compliance occurs. Also, the exchanges would issue notice to the non- compliant listed entity to pay fine within 15 days from the date of the notice.
