The National Stock Exchange (NSE) on Wednesday imposed fines and issued notices to 250 companies for not adhering to the Listing Obligations and Disclosure Requirements (LODR).
Among the companies penalised, were the grounded Jet Airways, subsidiary companies of crisis-ridden IL&FS, Adani Ports and Special Economic Zone (APSEZ, and InterGlobe Aviation Ltd, the parent company of the largest airlines by market share, IndiGo, and several state owned entities. Other companies penalized by the National Stock Exchange include Indraprastha Gas, Bharat Petroleum, Jindal Steel, Indian Oil, Hindustan Petroleum among others.
According to a media report, nearly 32 companies on the list are liable to pay a fine of Rs 4.5 lakh each. It is said that this fine will be credited to the “Investor Protection Fund” of NSE as per the SEBI circular.
The NSE said in a statement, "The National Stock Exchange (NSE) after monitoring the compliance of listing regulations for all its listed entities imposed fines and issued notices to non-compliant companies for the quarter ended March 31, 2019."
The NSE cited a market regulator Securities and Exchange Board of India (Sebi) circular in this regard, which says that gives it the power to "levy per day fines" and "freeze the holdings of the promoter and promoter group" if non-compliant listed entities fail to comply with the requirements of listing regulations and/or pay the fine levied within the stipulated period.
In the event the non-compliance from these firms continues for over two quarters, the NSE can shift trading of securities to ‘Trade to Trade’ segment. In the trade to trade segment, shares cannot be transferred on an intraday basis but only on a delivery basis. There could also be a subsequent suspension on trading of such shares.
With Agency Inputs.