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NSE penalises companies for non-compliance with listing regulations

Mumbai, May 15, 2019: SEBI vide circular dated May 3, 2018 (ref no. SEBI/HO/CFD/CMD/CIR/P/2018/77) have specified uniform approach i.e. standard operating procedure (SOP) in the matter of levy of fines for non-compliance with certain provisions of SEBI (Listing obligations Disclosure Requirement) Regulations, 2015 (‘listing regulations’). 

The National Stock Exchange (NSE) after monitoring the compliance of listing regulations for all its listed entities imposed fines and issued notices to non-compliant companies for quarter ended March 31, 2019 as per above mentioned SEBI circular. The list of non-compliant companies for quarter ended March 31, 2019 are also disseminated by the Exchange on path

As per above mentioned SEBI circular, the Exchange can levy per day fines as specified in Annexure I of the said circular and freeze the holdings of the promoter and promoter group if non-compliant listed entities fails to comply with the requirement(s) of listing regulations and/or pay fine levied within the stipulated period. 

If the non-compliance continues for two consecutive quarters then the Exchange can shift the trading in securities of the companies to specified category wherein trades shall take place on ‘Trade for Trade’ basis and subsequently suspend the trading of companies as per Annexure II of the above mentioned SEBI circular.

About National Stock Exchange of India Limited (NSE):

National Stock Exchange of India Ltd. (NSE) is the leading stock exchange in India and the second largest in the world by nos. of trades in equity shares from January to December 2018, according to World Federation of Exchanges (WFE) report. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients.

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