Empowerment of Stock Exchanges for effective regulation of Listed Entities
Published: Jan 16, 2017
TIOLCORP News Service
MUMBAI, JAN 16, 2017: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations") specifically provide for imposition of fines, etc. by the stock exchanges. However, a similar provision is not available in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 ("ICDR Regulations"), which contain provisions for companies for raising fund through public / rights / preferential / bonus issue of securities.
In order to empower the stock exchanges for effective regulation of listed entities, the Board has approved insertion of a similar clause in the ICDR Regulations to enable actions such as imposition of fines, suspension of trading, etc. by stock exchanges for contravention of ICDR Regulations. Based on the amended Regulations, SEBI would issue appropriate circular/guidelines providing for standard operating procedure for imposing of fines, etc. on violation of certain provisions of ICDR Regulations in consultation with stock exchanges. This will reduce cost of undertaking adjudication/quasi-judicial actions in case of minor violations for the listed entities.