Securities and Exchange Board of India (SEBI) revised the framework which directs imposition of penalty by stock exchanges in case of violation of disclosure norms. The capital markets regulator said in a statement on Tuesday that exchanges may deviate from the original regulation if investors are not affected.
On August 19, 2019, SEBI had issued a circular specifying the penalties to be levied by the stock exchanges for non-compliance of certain provisions of the SEBI (ICDR) Regulations, 2018.
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These penalties were related to delay in issue of bonus by listed entities and non-completion of conversion of convertible securities and allotment of shares within 18 months from the date of allotment of such securities.
The penalty of this structure is mandatory 20,000 per day till the date of compliance against companies violating disclosure norms.
SEBI has given some relief regarding this framework in a circular on Tuesday.
“Stock exchanges may deviate from the provisions of the circular, wherever the interest of the investors is not prejudicially affected, if necessary, only after recording reasons in writing,” SEBI said.
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The market regulator further said that the stock exchanges are advised to bring the provisions of this circular to the notice of the listed entities and also put the same on their website.
This circular is issued under regulation 299 of the ICDR Regulations and in exercise of the powers conferred under section 11(1) of the SEBI Act 1992 to protect the interest of investors in securities and to promote and regulate the development of securities market. has gone. , it noted.
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