The Securities and Exchange Board of India vide its notification dated 29th December 2021, has notified the guidelines for levying fines and taking action for non-compliance with continuous disclosure requirements by the issuers of listed non-convertible securities and commercial papers. The guidelines shall come into force for the due dates of compliances falling on or after February 01, 2022.
SEBI has specified the fine amounts to be levied in case of violation of different provisions of “Listing Obligations and Disclosure Requirements” norms and the actions to be taken in case of non-compliance.
Every recognized stock exchange shall review the compliance status of the entities having listed their Non-Convertible Securities and/or Commercial Paperand shall issue notices to the non-compliant entities within 30 days from the due date of prescribed timeline. Non-compliant entity shall ensure compliance with the requirement(s) and pay fines as per the circular within 15 days from the date of such notice.
In case entities fail to do so, exchanges will have to issue reminder notices and at the same time, send intimation to other exchanges where the non-convertible securities or commercial paper of the non-compliant entity are listed.
