PNB loan scam co-accused Mehul Choksi’s Gitanjali Gems has been fined by the NSE for failure to file financial results for the quarter ended December, 2017. The company may be suspended from trading if it does not file its results, which it is likely to do.
The NSE has levied penalties on 24 such companies including ABG Shipyard, Amtek Auto, DS Kulkarni Developers, Bharati Defence and Infrastructure, Educomp Solutions, Shree Renuka Sugars, Moser-Baer (I), and Sterling Biotech, among others.
The decision has been communicated through letters to investors of these companies by Central Depository Services (CDSL).
According to stock exchange listing norms, companies have to file results on quarterly basis within 45 days from the end of the quarter. SEBI allows stock exchanges to impose fines as action of first resort in case of non-compliance with listing regulations including non-submission of the financial results within the stipulated time period.
Suspension
The exchanges can invoke suspension of trading in case of subsequent and consecutive defaults.
According to SEBI norms, bourses should follow a system of uniform fine structure for non-compliance with listing norms and a standard operating procedure for suspension of specified securities.
The exchanges can can levy penalty of ₹5,000 a day on the entity for failure to file financial results, till the date of compliance.
This fine is payable if it is the first case of such non-compliance by the company.
For each subsequent and consecutive non-compliance, exchanges have to impose a fine of ₹10,000 a day of not complying, till the date of compliance. If the violation continues for more than 15 days, additional fine of 0.1 per cent of paid-up capital of the entity or ₹1 crore, whichever is less, is imposed.
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