NSE penalises companies for non-compliance with listing regulations

Bloomberg Quint

NSE fines 250 companies for non-compliance with listing regulations

PTI | May 15 2019, 5:39 PM

The National Stock Exchange on Wednesday said it has penalised 250 companies, including two IL&FS group firms and Jet Airways (India) Ltd., for non-compliance with various listing regulations for the quarter ended March 31, 2019.

The total penalty imposed on the non-compliant companies is little over Rs 8.84 crore, according to NSE data.

The move is in accordance with markets regulator Securities and Exchange Board of India's circular that had put in place a standard operating procedure to check non-compliance with provisions of (Listing obligations Disclosure Requirement) Regulations, NSE said. Fines have been levied in the range of Rs 1,000 to Rs 4.5 lakh.

Penalty of Rs 4.5 lakh has been levied on 31 companies that include Adani Ports and Special Economic Zone Ltd., Power Finance Corporation Ltd., Bharat Electronics Ltd., Hindustan Copper Ltd., Bharat Heavy Electrical Ltd., Oil India Ltd. and Indian Oil Corporation Ltd. among others.

The firms that have been fined Rs 4.5 lakh have violated Regulation 17 of LODR Regulations, pertaining to the composition of board of directors.

SEBI, in May 2018, came out with a mechanism to check non-compliance of listing conditions, wherein exchanges have been given powers to freeze promoter shareholding and even delist the shares of such defaulting companies.

Besides, exchanges can levy fines on non-compliant company, move the stocks of such firms to restricted trading category and suspend trading in the shares of such entities.

Grounds for suspension from listing include failure to comply with the board composition including appointment of women director and failure to constitute audit committee for two consecutive quarters; failure to submit information on the reconciliation of shares and capital audit report for two consecutive quarters.

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Money Control

NSE penalises 250 companies for non-compliance with listing disclosure norms

As per SEBI norms, the exchange can levy per day fines and even freeze the promoter and non-promoter group holdings if non-compliant companies fail to comply or pay the requisite fine.

Tarun Sharma|May 15, 2019

The National Stock Exchange (NSE) has penalised 250 companies for non-compliance with the SEBI Listing Obligation and Disclosure Requirement Regulations (LODR).

The Securities and Exchange Board of India (SEBI) had on May 3, 2018, issued a circular specifying a uniform approach i.e. standard operating procedure (SOP) in the matter of levy of fines for non-compliance with certain provisions of the LODR 2015 regulations.

After monitoring the compliance of listing regulations for all its listed entities, NSE imposed fines and issued notices to non-compliant companies for the quarter ended March 31, 2019.

As per the SEBI circular, the exchange can levy per day fines and freeze the holdings of the promoter and promoter group if non-compliant listed entities fail to comply with the requirements of listing regulations and/or pay a fine levied within the stipulated period.

In case the non-compliance continues for two consecutive quarters, the exchange can move the securities of these companies to ‘Trade to Trade’ segment -- where shares can be traded only on delivery basis and no intraday trades are allowed -- and subsequently even suspend trading of these securities.

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