New Delhi: Capital markets regulator Sebi on Tuesday modified the framework that specified the fines imposed by stock exchanges for violation of disclosure norms.
The regulator, in August 2019, came out with a circular, specifying the fines to be imposed by stock exchanges for non-compliance with certain provisions of Issue of Capital and Disclosure Requirements (ICDR) regulations. These fines were related to delay in completion of bonus issue by listed entities and non-completion of the conversion of convertible securities and allotment of the shares within 18 months from the date of allotment of such securities.
Under this, companies in violation of disclosure regulations need to pay a penalty of Rs 20,000 per day till the date of compliance. In a circular on Tuesday, Sebi said stock exchanges may deviate from the framework issued in August 2019 in case investors’ interest are not ”adversely” affected.
”The stock exchanges may deviate from the provisions of the circular, wherever the interest of the investors are not adversely affected, if found necessary, only after recording reasons in writing,” Sebi said.