Capital Market
24 January 2020, Friday
Revision in Fine Structure In Case of Non-Compliance with SEBI Listing Regulations, 2015
The Apex Capital market Regulator, SEBI on January 22, 2020 has come out with a circular prescribing revised fine structures for non-compliances with certain provisions of the Listing Regulations, freezing of entire shareholding of the promoter and promoter group and the standard operating procedure for suspension of trading in case the non-compliance is continuing and/or repetitive.
The said circular is being issued in supersession of earlier circular bearing ref. no. SEBI/HO/CFD/CMD/CIR/P/2018/77 dated May 03, 2018.
The fine structure prescribed in the SEBI circular dated January 22, 2020 will be effective from compliance periods ending on or after March 31, 2020.
The fine structures, as per revised SEBI circular dated January 22, 2020 are as follows:
| Regulation | Non-Compliances | Fine payable | Comparison with May 03, 2018 circular |
| Reg. 6(1) | Non -Compliance with requirement to appoint CS as Compliance officer | ₹ 1,000 per day | —same— |
| Reg. 7(1) | Non -Compliance with requirement to appoint Share transfer agent | ₹ 1,000 per day | —same— |
| Reg. 13(1)* | Failure to ensure that adequate steps are taken for expeditious redressal of investor complaints | ₹ 1,000 per day | —same— |
| Reg. 13(3) | Non- Submission of Shareholders Complaints statement | ₹ 1,000 per day | —same— |
| Reg. 17(1) | Non -Compliance with Composition of Board of Directors including failure to appoint woman director | ₹ 5,000 per day | —same— |
| Reg. 17(1A) | Non-compliance with the requirements pertaining to appointment or continuation of Non-executive director (NED) who has attained the age of 75 years | ₹ 2,000 per day | Newly inserted Special Resolution is required to be passed for appointment of NED > 75 years |
| Reg. 17(2) | Number of Board meetings | ₹ 10,000 per instance | Newly inserted Min. 4 meetings in a year. Max. gap of 120 days between 2 meetings |
