Over 200 companies face heat for violating disclosure norms
PrintListen to this Article
Over 200 listed companies have been penalised by the stock exchanges for violating various listing agreement norms, involving late or non-submission of mandatory details like financial results and shareholding data and non-compliance to corporate governance regulations.
While National Stock Exchange (NSE) has taken action against 31 companies for such violations, the BSE has imposed penalties on more than 200 companies. There are companies which are common on the lists of non-compliant entities for both the bourses. While the fine amounts as such are not big, with all the companies put together facing a penalty of less than Rs 4 crore, the exchanges can take further penal action such as freezing of trading in shares and eventual delisting in the case of further defaults.
The fines have been imposed as per the new norms that came into place last year and provide for the stock exchanges to take penal action against companies not complying with the provisions of listing agreement in letter and spirit. These provisions require every listed company to submit details like financial results, shareholding patterns and corporate governance compliance reports within prescribed time periods.
Overall, NSE has taken action against 31 companies for various violations. On the other hand, BSE has imposed fine on 212 companies for late or non-disclosure of shareholding data, while 186 companies have been taken to task by the exchange for non-compliance to provisions that require filing of audit report for reconciliation of share capital.
As many as 172 companies have faced action for delayed or no filing of shareholding data and 18 firms have been penalised for late or non-submission of financial results. According to regulatory norms, companies need to submit their Annual Reports at least 21 days in advance of their annual shareholding meeting, which needs to be held within six months from the end of company's financial year.
Besides, the quarter-end shareholding pattern needs to be submitted in a prescribed format within 21 days from the end of a quarter. The financial results needs to be submitted within 60 days from the end of the quarter (where it is the final quarter) and within 45 days for other quarters. Firms need to submit their corporate governance compliance reports within 15 days from end of every quarter. (PTI)
Category : Corporate Law | Comments : 0 | Hits : 663
Ashneer Grover, former managing director of BharatPe, has moved the National Company Law Tribunal (NCLT), Delhi, alleging opression and mismanagement at the company. The case came up for hearing on December 6, wherein his lawyer sought additional time to address the tribunal on maintainability. The case will be heard next on January 11. According to the plea, reviewed by Moneycontrol, Grover has filed the plea against BharatPe holding company Resilient Innovations and 11 of its directors i...
Over 96,000 companies have wound up their operations in the past five years, according to the Ministry of Corporate Affairs. Businesses opt for winding up for various reasons, including financial unviability. From April 1, 2018 to March 31, 2023, as many as 96,261 companies exited voluntarily, invoking a section in the Companies Act, according to a report in the Mint. According to the data from the ministry, under the Insolvency and Bankruptcy Code (IBC), final resolution orders have be...
Three board members of Ed tech company Byju’s resigned on Thursday, June 22. According to reports, Peak XV Partners' GV Ravishankar, Prosus' Russell Dreisenstock and Chan Zuckerberg Initiative's Vivian Wu have stepped down from their responsibilities from the board. The company spokespersons have denied reports dismissing them as speculative. Meanwhile, The Ken has reported that Byju’s auditor’s Deloitte Haskins & Sells had also stepped down with immedi...
The Enforcement Directorate has accused Amway India Enterprises of running a multi-level marketing scam, while attaching its assets worth Rs 757 crore on Monday, including its factory in Tamil Nadu’s Dindigul district and bank balances of Rs 346 crore. The agency said its money trail against Amway revealed that the company had collected Rs 27,562 crore from its business operations from 2002-03 to 2021-22. Out of this, Amway paid a commission of Rs 7,588 crore to its distributors and m...
The Insolvency and Bankruptcy Board of India (IBBI) has issued a fresh set of rules to fast track voluntary liquidation by companies under the Insolvency and Bankruptcy Code (IBC). The amendments to the IBBI (voluntary liquidation process) regulations notified on Tuesday sharply cuts short the time allowed to complete various procedures, showed an official order. As per the new regulations, the timeline for preparation of list of stakeholders by liquidators has been shortened to 15 day...
Comments