TaxTMI 
TaxTMI 
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 compliances
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....spension and revocation of trading of shares of listed entities for such non compliances. 1. Based on general feed- back received from various stakeholders, it has been decided to streamline the processes and procedures with regard to actions for non compliances of certain listing conditions which have so far been considered as grounds for suspension of trading by the recognised stock exchanges. Accordingly, it has been decided that 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. In order to maintain consistency and uniformity of approach in this regard, it has been decided to lay down, in th....
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....the shares of the concerned entity are listed, shall enforce the compliance of respective listing conditions in terms of the requirements of this circular. 4. 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. 5. In view of the above, the recognised stock exchanges are advised to:- (a) make necessary amendments to the their bye-laws, rules or regulations, for incorporation of the above fine structure and SOP immediately; (b) put in place appropriate systems to monitor compliance with listing requirements....
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....i.gov.in. Yours faithfully, Sunil Kadam General Manager email: [email protected] Annexure I Imposition of fine 1. The recognised stock exchange shall impose fine on listed entities for noncompliance with certain clauses of the listing agreement due to non-submission /delay in submission of reports/documents to recognised stock exchange as under: Clause of listing agreement Fine payable for 1^st non-compliance Fine Payable each subsequent and consecutive noncompliance Listing agreement Clause 31 Non-submission of the Annual Report within period prescribed under this clause. If non-compliance continues for more than 5 days, Rs. 1,000 per day till the date of compliance. Rs.2,000 p....
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....r Protection Fund" of the concerned recognised stock exchange. 3. The recognised stock exchange shall disseminate on their website the names of noncompliant listed entities that are liable to pay fine for non-compliance of the above clauses of the listing agreement. 4. Every recognised stock exchange shall review the compliance status of the listed entities within 45 days from the end of the each quarter (for clauses at 35 and 49) and within 15 days from the due date of submissions under the clauses 31 and 41 and issue notices to the non-compliant listed entities to ensure compliance and pay fine as per this circular within 15 days from the date of the notice. 5. If any non-compliant listed entity fails to pay the fine despite rece....
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....respect to submission of shareholding pattern for two consecutive quarters; (c) failure to comply with clause 41 of listing agreement with respect to submission of financial results for two consecutive quarters; (d) failure to comply with clause 49 of listing agreement with respect to submission of corporate governance compliance report for two consecutive quarters; (e) failure to submit information on the reconciliation of shares and capital audit report, for two consecutive quarters; (f) receipt of the notice of suspension of trading of that entity by any other recognised stock exchange on any or all of the above grounds. 2. Before suspension of trading on any of the above grounds, except clause 1 (f....
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...., the recognised stock exchange shall suspend the trading in the shares of a non-compliant listed entity. The entire shareholding of promoter/prompter group of such non-compliant listed entity shall remain frozen till expiry of three months from the date of revocation of suspension. 6. While suspending trading in the shares of the non-compliant entity the recognised stock exchange shall send intimation of suspension to other recognised stock exchanges where the shares of the non-compliant entity are listed. On receipt of such intimation the other recognised stock exchanges shall also suspend trading in the shares of the entity. 7. After 15 days of suspension, trading in the shares of non-compliant entity may be allowed on the "Trade f....