Issuers must refund monies within 7 days if listing is denied under Regulation 4E; directors are liable.
Regulation 4E of the Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015 mandates that issuers apply for listing on recognized stock exchanges. If listing or trading permission is denied, the issuer must refund all received monies within seven days of receiving the earliest intimation of rejection. Failure to repay incurs a 15% annual interest until refunded. If the issuer is a corporate body under the Companies Act, 2013, each defaulting director is jointly and severally liable to repay the money with interest.
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