SEBI amends rules related to penalty for violation of disclosure requirement
The Securities and Exchange Board of India (SEBI) in August 2019 issued a circular clarifying the penalties to be levied by the stock exchanges for non-compliance of certain provisions of the Capital Issue and Disclosure Requirements (ICDR).
These fines pertained to the delay in completing the process of issue of bonus by the listed entities and not completing the conversion of convertible securities and allotment of shares within 18 months from the date of allotment of such securities.
Under this, companies for violating disclosure norms were required to pay a fine of Rs 20,000 per day till the date of compliance.
In a circular issued on Tuesday, SEBI said that if the interest of investors is not adversely affected, the stock markets may adopt a divergence from the framework issued in August, 2019.
“If the interest of the investors is not adversely affected, the stock markets may adopt a divergence view from the framework issued in August, 2019,” the regulator said. If need be, they can only seek reasons in writing.
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