The Securities and Exchange Board of India (SEBI) through a circular dated 12th September, 2019 has mandated all the listed entities to submit a “report on the unpaid dues” along with draft scheme of arrangement/ amalgamation to Stock Exchange.
SEBI in its previous circular dated 10th March, 2019 has specified that all listed entities shall submit few specified documents to Stock Exchange for obtaining observation letter. Amendments have been brought for submission of additional information regarding unpaid dues.
Amendments to Circular dated March 10, 2017
- All the listed entities shall ensure all the dues, fines penalties imposed by SEBI has been paid. In case of unpaid dues/fines/penalties, the listed entity shall submit to Stock Exchange a ‘Report on the Unpaid Dues’, prior to obtaining Observation Letter from Stock Exchange on the draft scheme.
- The Unpaid Dues Report shall be forwarded by the Stock Exchanges to SEBI before SEBI communicates its comments on the Draft Scheme to the Stock Exchange.
- Any misstatement or false statement made in the ‘Report on the Unpaid Dues’ would attract punitive action against such listed entities.
- A Format for reporting of unpaid dues i.e. Annexure B has been inserted.
Click here to see circular.
