image

Fine structure for non-compliance with the requirement of Clause 49(II)(A)(1) of Listing Agreement

1. SEBI, vide Circular No. CIR/CFD/POLICY CELL/2/2014 dated April 17, 2014,
amended the provisions of Clause 49 of Listing Agreement relating to Corporate
Governance, mandating, inter-alia, that the Board of Directors of listed entities
shall have an optimum combination of executive and non-executive directors with
at least one woman director. Further, vide Circular No. CIR/CFD/POLICY
CELL/7/2014 dated September 15, 2014, the timeline to comply with the
aforesaid requirement was extended to March 31, 2015.

2. SEBI vide Circular No. CIR/MRD/DSA/31/2013 dated September 30, 2013 has
prescribed the uniform fine structure for non-compliance with certain provisions of
Listing Agreement including Clause 49. The Stock Exchanges have amended
their bye laws to the effect that issuer shall be liable to pay fine(s) as prescribed
by Stock Exchanges and/or SEBI for non-compliance with the provisions of
Listing Agreement etc. In continuation to the aforesaid circular, the Stock
Exchanges are advised to impose the following fine on listed entities for non-compliance
with the requirement of Clause 49(II)(A)(1) of Listing Agreement:

Compliance Status Fine Structure

Listed entities complying between
April 1, 2015 and June 30, 2015
‚¹ 50,000/-

Listed entities complying between
July 1, 2015 and September 30,
2015
‚¹50,000 + ‚¹1000/- per day w.e.f. July 1,
2015 till the date of compliance

Listed entities complying on or
after October 1, 2015
‚¹1,42,000/- + ‚¹5000/- per day from
October 1, 2015 till the date of compliance

3. For any non-compliance beyond September 30, 2015, SEBI may take any other
action, against the non-compliant entities, their promoters and/or directors or
issue such directions in accordance with law, as considered appropriate.

4. This circular is issued in exercise of the powers conferred under sections 11(1)
and 11A (2) of the Securities and Exchange Board of India Act 1992, read with
section 10 of the Securities Contracts (Regulation) Act, 1956 in the interest of
trade and public interest and for the protection of the interests of investors in
securities and to promote the development of, and to regulate the securities
market and shall come into effect immediately.

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates