NSE fines 250 companies, including Jet Airways, for non-compliance with listing regulations

The total penalty imposed on the non-compliant companies is little over Rs 8.84 crore, according to NSE data.

Published: 15th May 2019 04:42 PM  |   Last Updated: 15th May 2019 05:03 PM   |  A+A-

The National Stock Exchange. (Photo | Reuters)

By PTI

NEW DELHI: The National Stock Exchange (NSE) Wednesday said it has penalised 250 companies, including two IL&FS group firms and Jet Airways, for non-compliance with various listing regulations for the quarter ended March 31, 2019.

The total penalty imposed on the non-compliant companies is little over Rs 8.84 crore, according to NSE data.

The move is in accordance with markets regulator Sebi's circular that had put in place a standard operating procedure to check non-compliance with provisions of (Listing obligations Disclosure Requirement) Regulations, NSE said.

Fines have been levied in the range of Rs 1,000 to Rs 4.5 lakh. The penalty of Rs 4.5 lakh has been levied on 31 companies that include Adani Ports and Special Economic Zone, Power Finance Corporation, Bharat Electronics Ltd, Hindustan Copper Ltd, Bharat Heavy Electrical Ltd, Oil India Ltd, and Indian Oil Corporation among others.

The firms that have been fined Rs 4.5 lakh have violated Regulation 17 of LODR Regulations, pertaining to the composition of board of directors.

The Securities and Exchange Board of India (Sebi) in May 2018, came out with a mechanism to check non-compliance of listing conditions, wherein exchanges have been given powers to freeze promoter shareholding and even delist the shares of such defaulting companies.

Besides, exchanges can levy fines on non-compliant company, move the stocks of such firms to restricted trading category and suspend trading in the shares of such entities.

Grounds for suspension from listing include failure to comply with the board composition including appointment of women director and failure to constitute audit committee for two consecutive quarters; failure to submit information on the reconciliation of shares and capital audit report for two consecutive quarters.

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