Freezing of promoter demat accounts secures unpaid listing regulation fines by restricting transferability of securities. Where a listed entity fails to pay fines within the notice period, the recognized stock exchange shall, after expiry of that period, instruct depositories to freeze holdings in other securities in promoter and promoter group demat accounts to the extent of liability calculated quarterly. For two consecutive periods of non compliance and failure to comply with exchange notices, the exchange may direct freezing of the entire promoter and promoter group shareholding in the listed entity, with additional freezes in other securities to cover liability. Exchanges decide which securities and holdings to freeze and depositories must furnish holdings information.