June 15, 2017
Sebi asks stock exchanges to impose a fine of Rs20,000 per day on any company that delays the completion of its bonus issue
The Securities and Exchange Board of India (Sebi) on Thursday asked stock exchanges to impose a fine of Rs20,000 per day on any company that delays the completion of its bonus issue.
If a company does not allot shares resulting out of conversion of convertible securities within 18 months, a similar penalty will be imposed. Also, the penalty will be the same if a company does not approach the exchange for listing of equity shares within 20 days from the date of their allotment to shareholders.
If a company continues to be non-compliant on any of the three areas for more than 15 days, it will attract an additional fine of 0.01 % of paid-up capital of the entity or Rs1 crore, whichever is less.
The money from the fine will be credited to the stock exchange’s investor protection fund, Sebi said.