The Securities and Exchange Board of India in its Circular dated 22nd January 2020 has specified the uniform structure for imposing fines as a first resort for non-compliance with certain provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) and the standard operating procedure for suspension and revocation of trading of specified securities.
SEBI in its earlier circular dated 3rd May 2019 has specified the structure for imposing fines for noncompliance, freezing of entire shareholding of the promoter and promoter group and the standard operating procedure for suspension of trading in case the non-compliance is continuing and/or repetitive. However, Pursuant to the amendments to Listing Regulations and in order to streamline the Standard Operating Procedure for dealing with non-compliance, the present circular has been issued suppressing the earlier one.
Therefore the stock exchanges shall, having regard to the interests of investors and the securities market shall take action by imposing fine or any other act for non-compliance in respect of listed entities. The fine amount for violation of various provision has been listed out in the Annexure I of this Circular.
Annexure II provides the standard operating procedure for suspension and revocation of trading of specified securities.
The Concerned recognized stock exchange shall display on their website non – compliance by the listed entity and details of fine levied/ action taken and the fines imposed shall continue to accrue till the time of rectification of the non-compliance to the satisfaction of the concerned recognized stock exchange.
Further the stock exchanges shall follow the Standard Operating Procedure (SOP) for suspension and revocation of suspension of trading of specified securities.
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