Home Framework Sebi authorizes framework on non-compliance with disclosure standards

Sebi authorizes framework on non-compliance with disclosure standards


The Securities and Exchange Board of India (Sebi) has changed the framework that dictates the fines to be imposed by the exchange for violating disclosure standards. The capital market regulator said in a statement Tuesday that the exchanges may deviate from the original regulation if investors are not affected.

On August 19, 2019, Sebi published a circular specifying the fines to be imposed by the Stock Exchanges for non-compliance with certain provisions of the SEBI Regulation (ICDR), 2018.

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These fines were related to the delay in the completion of the free allocation by listed entities and the failure to complete the conversion of convertible securities and the allocation of shares within 18 months from the date of allocation of these titles.

This framework provided for a fine of ??20,000 per day until the date of compliance to be imposed on companies in violation of disclosure regulations.

In a circular Tuesday, Sebi provided some relief regarding this framework.

“Stock exchanges may depart from the provisions of the circular, whenever the interests of investors are not harmed, if necessary, only after having recorded the reasons in writing,” Sebi said.

Read also: SEBI announces the rights and responsibilities to invest in the securities market

The stock exchanges are advised to bring the provisions of this circular to the attention of listed entities and also to disseminate them on its website, added the market surveillance authority.

This Circular is issued under Regulation 299 of the ICDR Regulation and in the exercise of the power conferred under Section 11 (1) of the Sebi Law of 1992, in order to protect the interests of securities investors. securities and promote the development and regulate the securities market. , he noted.

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