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TMI BlogCompliance with the provisions of Equity Listing Agreement by listed companies – Monitoring by Stock ExchangesX X X X Extracts X X X X X X X X Extracts X X X X ..... d to actions for noncompliance of certain listing conditions which had so far been considered as grounds for suspension of trading by the recognized Stock Exchanges. It was decided that 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. In order to maintain consistency and uniformity in approach in this regard, SEBI has laid down (i) Uniform fine structure for non-compliance of certain clauses of the Listing Agreement; and (ii) Standard operating procedures for suspension and revocation of suspension of trading in the shares of such listed entities. It was also mandated that every recognized Stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circular dated September 30, 2013 and pursuant to the discussions with the Recognised Stock Exchanges and market participants, in order to address the above mentioned concerns, the Recognised Stock Exchanges are advised to: 5.1 Put in place appropriate framework (including adequate manpower) to effectively monitor the adequacy and accuracy of the disclosures made by listed companies; 5.2 Devise the framework in such a way that it detects any non-compliance / violation of the provisions of Securities Contracts (Regulation) Act, 1956, Securities and Exchange Board of India Act, 1992, the Rules and Regulations made there under, Listing Agreement, and any other applicable laws. Some indicative parameters to be included in the said framework a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er ending December 31, 2013. 7. This Circular is being issued in exercise of the powers conferred under Section 11 read with Section 11A of the Securities and Exchange Board of India Act, 1992. 8. This Circular is available on SEBI website at www.sebi.gov.in under the categories "Legal Framework" and "Issues and Listing". Yours faithfully, Anindya Kumar Das Deputy General Manager +91-22-26449616 [email protected] Enclosures: Annexure-I: Indicative parameters to be included in the monitoring framework. Annexure-II: Format of exception report to be submitted to SEBI Annexure-I Indicative parameters to be included in the framework for monitoring by the Stock Exchanges in respect of Clause 35, 36, 41 and 49 of the Equity Listing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e company. B. Follow-up on material information: Stock Exchanges shall follow up with the listed companies at every stage for the updates on material events reported, either suo moto or upon receipt of information from other sources. 5. In case there is any deficiency in the information / clarification provided by the listed company, Stock Exchanges shall seek further information / clarification from the company within such time as they may deem fit but not later than 2 working days from the date of the said disclosure. 6. Listed company shall submit the requisite information / clarification within such timeframe as may be specified by the Stock Exchanges which shall not exceed 5 working days from the date of the communication of Stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le A- Basic details of compliance/ monitoring status in respect of Clauses 35, 41 and 49 of the Equity Listing Agreement: Sr. No. Particulars For the current quarter ended on (………) For the previous quarter ended on (………) 1. Total number of companies 2. Number of companies which filed Reports 3. Quality check completed (number of companies) 4. Number of companies where information was found inadequate 5. Number of companies from whom clarifications were sought with respect to inadequacy of information 6. Number of companies from which either no reply was received or the reply received was not satisfactory as per the Stock Exchange. (Details of such companies to be given in Table- B) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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