SEBI lists updated penalty for non-compliances with continuous disclosure requirements by issuers of listed Non-Convertible Securities & Commercial Papers; applicable for the due dates of compliances falling on or after February 01, 2022
The Securities and Exchange Board of India (“SEBI”) has, through a Circular dated 29th December, 2021, updated the structure for levying fines and acting for non-compliance with continuous disclosure requirements specified under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations”), by the issuers of listed Non-Convertible Securities and/ or Commercial Papers. The present circular is in suppression of SEBI’s previous circular dated November 13, 2020 (as discussed in the trail) regarding the same subject. The revised structure of fines is issued in line with the recent amendments to SEBI LODR Regulations.
The present circular shall come into force for the due dates of compliances falling on or after February 01, 2022 and the Circular dated November 13, 2020 would be applicable till the time current circular comes into force.
The present circular details out the fines and penalties as follows:
a. Annexure I Part A- Fine to be levied in case of non-compliance(s) by issuers of listed Non-Convertible Securities
b. Annexure I Part B – Fine to be levied in case of non-compliances by issuers of listed Commercial Papers
c. Annexure II – Action to be taken in case of non-compliances by issuers of listed Non Convertible Securities and/or Commercial Papers
The circular clarifies that in case a non-compliant entity is listed on more than one recognized stock exchange, the concerned recognized stock exchanges must take uniform action under this circular in consultation with each other.
Please note-
1. The amount of fine realized as per the structure provided in Annexure I of this circular has to be credited to the “Investor Protection Fund” of the concerned recognized stock exchange.
2. The fines specified in Annexure I of this circular will continue to accrue till the time of rectification of the non-compliance and to the satisfaction of the concerned recognized stock exchange. Such accrual will be irrespective of any other disciplinary/enforcement action(s) initiated by recognized stock exchange(s)/SEB.
