Non compliance with ICDR provisions – penalties

SEBI has vide its circular dated 15th June, 2017 levied penalties on listed entities for non compliance with certain provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations 2014. These provisions are relating to delay in completion of bonus shares, non allotment of shares on conversion of convertible securities within 18 months and issuer not approaching the exchange for listing of equity shares within 20 days from the date of allotment under clause 95(1), 75 and 108(2) respectively of the SEBI (ICDR) Regulations. The fine is Rs.20,000 per day of non compliance till the date of compliance. If non compliance continues for more than 15 days, then additional fine of 0.01% of the paid up capital of the listed entity or Rs.1 crore, whichever is less.

SEBI circular is available here i.e. http://www.sebi.gov.in/legal/circulars/jun-2017/non-compliance-with-certain-provisions-of-sebi-issue-of-capital-and-disclosure-requirements-regulations-2009_35112.html

 

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