Amendment to bye-laws of recognised stock exchanges with respect to non-compliance of certain listing conditions and adopting Standard Operating Procedure for suspension and revocation of trading of shares of listed entities for such non co
Summary
This circular mandates that recognized stock exchanges impose fines as a first resort for non-compliance with specific listing conditions before suspending trading. It establishes a standardized fine structure and a Standard Operating Procedure for the suspension, 'Z' category trading, and revocation of such actions. Additionally, it requires depositories to freeze promoter shareholdings upon intimation from exchanges during enforcement processes. This section outlines the Standard Operating Procedure for suspending trading in shares of listed entities due to specific compliance failures. It details the procedural steps including intimation, freezing of promoter shareholdings, public notices, and conditions for 'Trade for Trade' basis trading during suspension. Furthermore, it establishes the criteria and timeline for the revocation of such suspension once compliance is achieved.
Text
Recognised stock exchanges shall use imposition of fines as action of first resort in case of such non compliances and invoke suspension of trading in case of subsequent and consecutive defaults.
On receipt of such intimation, the depositories shall freeze or unfreeze, as the case may be, the entire shareholding of the promoter and promoter group in such entity.
Every recognised stock exchanges shall put in place the system to monitor and review the compliance of respective listing conditions by the listed entities.
The recognised stock exchanges shall disclose on its website the action/s taken against the listed entities for non-compliance/s of the listing conditions; including the details of respective requirement, amount of fine, period of suspension, freezing of shares, etc.
Make necessary amendments to the their bye-laws, rules or regulations, for incorporation of the above fine structure and SOP immediately.
Put in place appropriate systems to monitor compliance with listing requirements and disclosure of compliance status with respect to listing requirements on their website.
Bring the provisions of this circular to the notice of its trading members and the entities that have their listed shares on the concerned recognised stock exchange and also to disseminate the same through their website.
Communicate to SEBI, the status of implementation of this circular in the Monthly Development Reports to SEBI.
Any deviation therefore should not dilute the spirit of the policy contained therein. Any necessary and reasonable deviation shall be on justifiable reasons to be recorded in writing.
If non-compliance continues for more than 5 days, `1,000 per day till the date of compliance. If non-compliance continues for more than 5 days, `2,000 per day till the date of compliance.
`1,000 per day till the date of compliance. `2,000 per daytill the date of compliance. If non-compliance continues for more than 15 days additional fine of 0.1 % of paid up capital* of the entity or `1 crore, whichever is less.
`5,000 per day till the date of compliance. `10,000 per day till the date of compliance. If non-compliance continues for more than 15 days additional fine of 0.1 % of Paid Up capital* of the entity or ` 1crore, whichever is less.
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Source: SecMarx — Amendment to bye-laws of recognised stock exchanges with respect to non-compliance of certain listing conditions and adopting Standard Operating Procedure for suspension and revocation of trading of shares of listed entities for such non co. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.