SEBI Urges Stock Exchanges to Enforce Penalties for Non-Compliance with Listing Agreements u/ss 21 and 23(2.

The circular from the Securities and Exchange Board of India (SEBI) addresses the issue of non-compliance by companies with the provisions of the listing agreement on stock exchanges. It highlights that stock exchanges have not been taking action against such companies. The circular references Section 21 of the Securities Contracts (Regulation) Act, 1956, which mandates compliance with listing agreements, and Section 23(2), which prescribes punishment for violations. SEBI advises stock exchanges to take appropriate action against companies under Section 23(2) for any breaches of Section 21 due to non-compliance with listing agreement provisions.

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