BSE has issued Circular no. LIST/COMP/OPS/ 16 /2019-2020 dated 11th June 2019 regarding Action(s) to be initiated against listed Companies for non-payment of outstanding Annual Listing Fees (“ALF”)
This circular supersedes earlier
circular no. LIST/COMP/OPS/02/2019-20 dated April 05, 2019.
The last
date to pay Annual Listing Fees (ALF) (including the listing fee for Financial
Year 2019-20) (“hereinafter referred to as defaulting Company”) is August 31,
2019.
The following actions have been decided in case the Companies fail to
pay the outstanding Annual Listing Fees (ALF) :
I.
Action w.e.f. September 01,
2019:
·
The name of
the defaulting Companies shall be displayed on the BSE website on a
separate page to highlight their failure to
pay
·
On the
Company’s individual Stock Reach page on the Exchange website, a message shall
be displayed saying, “Company has not paid Annual Listing Fees and is in
violation of SEBI Regulations & Exchange Requirements.”
·
On Listing
centre whenever Company logs in for submitting disclosures, a similar message
would be displayed as a running ticker
·
The equity
shares of the Company shall be moved from Normal Trading to Trade to Trade
segment (i.e. gross settlement). A notice to this effect will also be issued to
all market participants.
II.
Action w.e.f. December 01, 2019
if the Company continues to remain in default:
Demat
accounts of the Promoter and Promoter Group of the Company (as per the latest shareholding pattern
submitted by the Company to the Exchanges) shall be frozen for all debits .
III.
Action w.e.f. March 01, 2020 if
the Company continues to remain in default:
Trading
in the equity shares of the Company shall be suspended.
IV.
Action w.e.f. September 01,
2020 if the Company continues to remain in default:
Since
the Company would be suspended for a period of more than 6 months on account of
violation of the Listing Regulations, it would be eligible for Delisting as per
the extant SEBI (Delisting of Equity shares) Regulations.
It may
be noted that the above measures would also apply to SME Companies listed on
the Exchanges that are in default for paying annual listing fees.
NOTE: The measures listed above, would not apply to
the following:
·
PSU Companies
· Companies who have been admitted
by NCLT under the Insolvency and Bankruptcy Code.
·
Companies that have only
Debt/Mutual Funds listed
·
For the computation of the total
outstanding amount TDS deducted would be excluded.
In
case the Company is commonly listed i.e. on more than one stock exchange,
actions such as transfer to Trade to Trade segment, freezing demat accounts of
promoter and promoter group, suspension and compulsory delisting of equity
shares and reversal of these actions shall be done in coordination by the
Exchanges where the Company is listed.
Link of Circular:
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