TMI BlogNon-compliance with certain provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Standard Operating Procedure for suspension and revocation of trading of specified securitiesX X X X Extracts X X X X X X X X Extracts X X X X ..... ecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( Listing Regulations ), recognized Stock Exchanges shall monitor compliance by listed entities with the provisions of the regulations. 2. Sub regulations (1) and (2) of regulation 98 of Listing Regulations inter alia specify liability of a listed entity or any other person for contravention and actions which can be taken by the respective stock exchange and the revocation of such actions, in the manner specified by SEBI. 3. Accordingly, recognized 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circular to the notice of listed entities and also to disseminate the same on its website. This circular shall come into force with effect from December 01, 2015. 8. This circular is issued under regulations 97, 98, 99 and 102 read with regulation 101(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. 9. This circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework and Continuous Disclosure Requirements . Yours faithfully, B N Sahoo General Manager Compliance and Monitoring Division Corporation Finance Department biranchins@sebi.gov.in ANNEXURE I IMPOSITION OF FINE 1. The recognized stock e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 5,000 per day of non-compliance till the date of compliance and If non-compliance continues for more than 15 days, additional fine of 0.1 % of Paid Up capital* of the entity or ₹ 1crore, whichever is less. ₹ 10,000 per day of non-compliance till the date of compliance and If non-compliance continues for more than 15 days, additional fine of 0.1 % of Paid Up capital* of the entity or ₹ 1 crore, whichever is less. *Paid up capital as on first day of the financial year in which the non-compliance occurs. 2. The amount of fine realized as per the above structure shall be credited to the Investor Protection Fund of the concerned recognized stock exchange. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e moving the share of non-compliant entity to Z category or vice versa. ANNEXURE II STANDARD OPERATING PROCEDURE (SOP) A. SOP for suspension of trading 1. Criteria for suspension of the trading in the shares of the listed entities: (a) failure to comply with regulation 27(2) with respect to submission of corporate governance compliance report for two consecutive quarters; (b) failure to comply with regulation 31 with respect to submission of shareholding pattern for two consecutive quarters; (c) failure to comply with regulation 33 with respect to submission of financial results for two consecutive quarters; (d) failure to comply with regulation 34 with respect to submission of Annual Report for two cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge shall intimate to the depositories to unfreeze, after one month from the date of compliance, the shares of the promoter and promoter group of the entity. Simultaneously, the recognized stock exchange shall give a public notice on its website informing compliance by the entity. 5. In case of failure to comply with respective requirement(s) and/ or pay fine as aforesaid, the recognized stock exchange shall suspend the trading in the shares of a non-compliant listed entity. The entire shareholding of promoter/ promoter group in such 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 recognized stock exchange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the suspension of trading of its shares after a period of three more months from the date of such compliance. 3. The recognized stock exchange shall, 7 days prior to revocation of suspension of trading in shares of the entity, issue a public notice on its website. 4. After 3 months from the date of revocation of the suspension, the recognized stock exchange shall send intimation to the depositories to unfreeze the shares of the promoter and promoter group. 5. After revocation of suspension, the trading of shares shall be permitted only in the 'Trade for Trade' basis for a period of three months from the date of revocation and after this period of three months, trading in the shares of the entity shall be shifted back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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