New Delhi: As part of efforts to furtherempower stock exchanges, Sebi has allowed bourses to penalise listed companies in case they violate securities law.
Sebi has amended Issue of Capital and Disclosure Requirements (ICDR) regulations that will enable stock exchanges to take actions such as imposition of fines and suspension of trading.
“If the listed entity fails to pay any fine imposed on it by the recognised stock exchange(s), within the period as specified from time to time, the stock exchange may initiate such other action in accordance with law, after giving a notice in writing,” Sebi said in a notification.
The move will help in reducing cost of undertaking adjudication or quasi-judicial actions in case of minor violations for the listed entities.
Earlier, these provisions are available for exchanges only under the Sebi LODR (Listing Obligations and Disclosure Requirements) Regulations.
Issue of Capital and Disclosure Requirements (ICDR) norms pertain to companies raising funds through public, rights, preferential or bonus issue of securities. PTI