Current Affairs

SEBI puts Penalty on Violation of Disclosure Norms

Current context: SEBI has put a penalty of Rs 20,000 per day on companies for violating certain provisions of Issue of Capital and Disclosure (ICDR) Regulations.
SEBI puts Penalty on Violation of Disclosure Norms 
  • In the case where shareholders’ approval for making the bond issue is not required, the fine will be applied if the bond issue is delayed beyond 15 days (from date of approval) after the board of directors have issued.
  • In the case where shareholders’ approval for making the bond issue is required, the fine will be applied if the bond issue is delayed beyond 2 months from the date of the meeting of the board of directors.
  • SEBI also clarified that it may grant approvals for the listing and trading of promoter’s bonus shares, only after the listed entity makes payment of the requisite fine.
  • Entities that didn’t complete the conversion of convertible securities and allot the shares within 18 months from the date of allotment of such securities are also levied with the fine.
  • As per the regulation, the fine would be credited to the "Investor Protection Fund" of the concerned exchange.
  • The non-compliant listed entity to pay fine within 15 days from the date of the notice issued by the exchanges.

Question: 

Q.1 What is the time limit given by SEBI for making the bond issue in a case where shareholders’ approval for making the bond issue is not required?
a. 2 months
b. 15 days
c. 25 days
d. 1 month
SEBI puts Penalty on Violation of Disclosure Norms SEBI puts Penalty on Violation of Disclosure Norms Reviewed by Neha Verma on August 20, 2019 Rating: 5

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