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Non-disclosure penalty Rs 1 cr

india Updated: Feb 16, 2009 11:46 IST

Companies delaying or not filing full disclosures with stock exchanges and with market watchdog SEBI as mandated, will have to face a penalty of up to Rs one crore, a SEBI representative said.

"Under certain categories, companies which acquire shares beyond a certain percentage stipulated under the regulations, are required to make dislosures. Under the Sebi Act, offenders are liable for a maximum penalty of up to of Rs one crore for not filing diclosures," a SEBI representative said at a seminar on corporate governance organised by the Institute of Company Secretaries of India (ICSI) in Mumbai.

"The names of offending companies will be put up on our website, which people and investors can read. That is the only way to punish them," he added.

The Sebi representative said the standard of corporate governance in the country still had a long way to go.

"We have taken action against offenders in the past and will impose penalties even in the future," he said.