INSUBCONTINENT EXCLUSIVE:
New Delhi: The National Stock Exchange (NSE) has imposed fines and issued notices to as many as 60 companies, including two ILFS group
firms, Videocon Industries and Unitech, for non-compliance with listing regulations.
ABG Shipyard and Bharati Defence and Infrastructure are
among the other entities, according to a communication.
The exchange would initiate further regulatory action on the companies, which could
include suspension, if they do not comply with the requirement, it added.
These firms have not made required submissions to the exchange as
per listing regulations within the prescribed time limit for the quarter ended September 2018.
In a communication to investors, the NSE said
the "exchange has levied fines and also issued notices for such non-compliances to the companies."
"The continued non-compliance of such
regulations may lead to further regulatory action on the companies which may include suspension," it said.
As per the NSE, ILFS group firms
-- ILFS Engineering and Construction Company and ILFS Transportation Networks -- have not submitted filings of financial results for the
three months ended September 30, 2018.
With regard to Unitech, the exchange said it has not complied with listing rules related to
shareholding disclosures, annual report and information pertaining to reconciliation of share capital audit report.
Videocon Industries
failed to adhere to listing rules related to shareholding disclosures as well as reconciliation of share capital audit report, as per the
communication.
According to Sebi, stock exchanges can use imposition of fines as action of first resort in case of non-compliance with
listing regulations including non-submission of financial results within the stipulated time period.
Further, exchanges can invoke
suspension of trading in case of subsequent and consecutive defaults.
Sebi rules mandate the bourses to follow a system of uniform fine
structure for non-compliance with listing norms and a standard operating procedure for suspension of specified securities.
As per the norms,
exchanges can levy a penalty of Rs 5,000 per day on the entity for failure to file financial results, till the date of compliance
This fine is payable if it is the first case of such non-compliance by the company.
For each subsequent and consecutive non-compliance,
exchanges can impose a fine of Rs 10,000 per day till the date of compliance.
If the violation continues for more than 15 days, additional
fine of 0.1 per cent of paid up capital of the entity or Rs 1 crore, whichever is less is imposed
