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NSE fines Gitanjali Gems, 23 others for not declaring financial results

According to listed norms, exchanges can levy a penalty of Rs 5,000 per day on the entity for failure to file financial results, till the date of compliance.

business Updated: Mar 13, 2018 19:51 IST
Press Trust of India, Mumbai
Gitanjali Gems,Mehul Choksi,NSE
The NSE will initiate regulatory action on the companies. These could include suspension if the firms do not comply with the requirement to file quarterly financial results. (REUTERS FILE)

The National Stock Exchange (NSE) has levied penalties on as many as 24 companies, including scam hit Gitanjali Gems, for failure to file financial results for the quarter-ended December 31.

The NSE will initiate further regulatory action on the companies which could include suspension if they do not comply with the requirement to file quarterly financial results.

The decision has been communicated through letters to investors of these companies by Central Depository Services Ltd (CDSL).

“The exchange has taken an initiative to intimate shareholders of the companies through CDSL who have not submitted financial results, shareholding pattern,” a National Stock Exchange (NSE) spokesperson told PTI.

The list of non-compliant companies include Mehul Choksi-owned Gitanjali Gems.

ABG Shipyard, Amtek Auto, DS Kulkarni Developers, Bharati Defence and Infrastructure, Educomp Solutions, Shree Renuka Sugars, Moser-Baer (I) and Sterling Biotech are also among the 24 companies on the list.

“Investors are requested to kindly take note that companies in which you have invested have not submitted quarterly filings of financial results for the quarter December 31,” the CDSL letter available with PTI said.

“The exchange has levied fines on the company and continued non-compliance may lead to further regulatory action on the company which may include suspension.” it added.

Companies are required to file the results on a quarterly basis within 45 days from the end of the quarter, under the listing norms.

As per Sebi, stock exchanges can use imposition of 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.

Further, the exchanges can invoke suspension of trading in case of subsequent and consecutive defaults.

Sebi rules mandate the bourses to follow a system of uniform fine structure for non-compliance with listing norms and a standard operating procedure for suspension of specified securities.

According to listed norms, exchanges can levy a penalty of Rs 5,000 per 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 Rs 10,000 per day of not complying, till the date of compliance.

If the violation continues for more than 15 days, additional fine of 0.1% of paid up capital of the entity or Rs 1 crore, whichever is less is imposed.

First Published: Mar 13, 2018 17:12 IST