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Sebi ups penalty for non-compliance

Any delay in bonus issue allotment would attract a penalty of Rs 1 crore on companies

BS Reporter  |  Mumbai 

The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai (Photo: Reuters)

Tighten the screws on listed companies, the (Sebi) on Thursday revised the penalty amount for of listing regulations. From now on, any delay in bonus issue allotment would attract a penalty of Rs 1 crore on companies along with prosecution.

on Thursday has issued the circular asked stock exchanges to impose fines in case of with certain provisions of (ICDR) regulations.

said if continues for more than 15 days, the company has to pay additional fine of Rs 0.01 per cent of paid up capital of the entity or Rs 1 crore, whichever is less, would be levied. " Paid up capital for this purpose shall be paid up capital as on first day of the financial year in which the the occurred," it said.

Similarly, in case of debt to equity conversion and in convertible securities same amount of penalty will be levied. For instance, if the companies don't allot shares on conversion of convertible securities within 18 months or if an issuer doesn't approach an exchange for listing of equity shares within 20 days from date of allotment.

"If any non-compliant listed entity fails to pay the fine, the recognised stock exchange may initiate appropriate enforcement action, including prosecution," said. The amount of fine would be credited to the "investor protection fund" of the respective exchange.

has also asked exchanges to disseminate the names of non-compliant listed entities on their website that are liable to pay fine for non-compliance, the amount of fine imposed and details of fines received.