SEBI Brings stricter penalty for Non-Compliance of SEBI ICDR Regulations

The Securities and exchange board of India vide circular dated 19th August 2019, on “non-compliance with certain provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018″ has prescribed a penalty of Rs.20,000 per day on those listed companies which fail to comply with certain provisions of SEBI ICDR regulations.

The Provisions on which the stock exchange shall impose fines are as under:

  • For delay in bonus issue, if it is declared at the board meeting, in cases where approval of shareholders is not required and the delay is beyond 15 days from the board meeting date. Where shareholders’ approval is required for capitalising the reserves, and the delay of the bonus issue is beyond 2 months from the date of approval by the Board.
  • For non-conversion of convertible securities and allotting the shares within 18 months from the date of allotment of such securities.
  • For failing to make an application for listing, within 20 days of the date of allotment, to one or more recognized stock exchange(s).
  • For failing to make an application for trading approval to the stock exchange within 7 days from the date of grant of listing approval.

The amount of fine realised will be credited to the “Investor Protection Fund” of the concerned stock exchange

The recognised stock exchanges shall issue notices to the non-compliant listed entity to pay fine within 15 days from the date of the notice, in case if the non-compliant entity fails to pay the fine, the stock exchange shall initiate appropriate enforcement action, including prosecution in furtherance of regulation 298 of SEBI ICDR, 2018

This Present Circular is issued in supersession to the Circular bearing reference Number CIR/CFD/DIL/57/2017 dated June 15, 2017

Click here to read the circular.