NSE issues notices to Unitech, others for non-compliance with listing norms
The National Stock Exchange (NSE) has imposed fines and issued notices to as many as 60 companies, including two IL&FS group firms, Videocon Industries, and Unitech, for non-compliance with listing regulations.
ABG Shipyard and Bharati Defence and Infrastructure are among the other entities, according to a communication.
The exchange would initiate further regulatory action on the companies, which could include suspension, if they do not comply with the requirement, it added.
These firms have not made required submissions to the exchange as per listing regulations within the prescribed time limit for the quarter ended September 2018.
In a communication to investors, the NSE said the “exchange has levied fines and also issued notices for such non-compliances to the companies.”
“The continued non-compliance of such regulations may lead to further regulatory action on the companies which may include suspension,” it said.
As per the NSE, IL&FS group firms — IL&FS Engineering and Construction Company and IL&FS Transportation Networks — have not submitted filings of financial results for the three months ended September 30, 2018.
With regard to Unitech, the exchange said it has not complied with listing rules related to shareholding disclosures, annual report and information pertaining to reconciliation of share capital audit report.
Videocon Industries failed to adhere to listing rules related to shareholding disclosures as well as the reconciliation of share capital audit report, as per the communication.
According to Sebi, stock exchanges can use imposition of fines as action of first resort in case of non-compliance with listing regulations including non-submission of financial results within the stipulated time period.
Further, exchanges can invoke suspension of trading in case of subsequent and consecutive defaults.
Sebi rules mandate the bourses to follow a system of uniform fine structure for non-compliance with listing norms and a standard operating procedure for suspension of specified securities.
As per the norms, exchanges can levy a penalty of Rs 5,000 per day on the entity for failure to file financial results, till the date of compliance. This fine is payable if it is the first case of such non-compliance by the company.
For each subsequent and consecutive non-compliance, exchanges can impose a fine of Rs 10,000 per day till the date of compliance.
If the violation continues for more than 15 days, additional fine of 0.1 per cent of paid up capital of the entity or Rs 1 crore, whichever is less is imposed.