NSE Penalizes 250 Companies for Non-compliance with Listing, Disclosure Norms
The National Stock Market (NSE) has actually penalized around 250 firms for non-compliance with the Stocks and Exchange Board of India (SEBI) listing Obligation and Disclosure Requirement Regulations (LODR) 2015. Offences consist of non-appointment of female directors, compliance officers, share transfer agents and delay in intimation of board conferences/meetings.
A couple of businesses that were punished consist of Adani Ports and Special Economic Zone Limited, Bharat Petroleum Corporation Limited (BPCL), Jet Airways (India) Limited, Bharat Heavy Electricals Limited (BHEL), InterGlobe Aviation Limited, IL&FS Engineering and Construction Company Ltd, Indian Oil Corporation Limited (IOCL) to name a few.
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According to the NSE declaration, around 72 firms are penalized for non-compliance with that requirement concerning the composition of the board including failure to assign woman directors. Out of the overall, 39 companies are punished for non-submission of the statement on investor complaints within the period prescribed, 19 for non-compliance with the constitution of nomination and also pay board, 18 for non-compliance with the constitution of audit board/committee, 26 for non-submission corporate governance compliance report within the prescribed period and also 37 for non-submission of shareholding pattern within proposed duration.
"The NSE after keeping an eye on the compliance of noting laws for all its provided entities enforced penalties as well as released notices to non-compliant firms for the quarter finished March 31, 2019, according to overstated SEBI circular," NSE said in a statement on Tuesday.
It claimed that NSE can levy each day penalties as specified in the Sebi circular and also freeze the holdings of the promoter and also promoter group if non-compliant listed entities fail to follow the requirement of noting laws and/or pay penalties imposed within the stated period. If the non-compliance continues for two consecutive quarters then NSE can shift the trading in securities of the companies to a specified category wherein trades shall take place on a ‘Trade for Trade’ basis and subsequently suspend the trading of companies as per Sebi circular.
In a circular dated 3 May 2018, the market regulator had actually defined a consistent approach i.e. standard operating procedure (SOP) imposing penalties for non-compliance with stipulations of Sebi LODR 2015.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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