In its circular from October 2017, SEBI had laid down the procedure to be followed by stock exchanges in case of non-compliance with Minimum Public Shareholding norms w.r.t listed companies, their promoters and directors.
The measures to be taken by stock exchanges included fine per day of non-compliance, freezing of shareholding of promoter / promoter group, prohibition of promoter / promoter group / directors from holding any new position as director in listed companies, increased fine beyond 1 year of non-compliance, compulsory delisting, etc.
Through today’s circular, SEBI has advised stock exchanges to not take any penal action during this period and also withdraw any action already taken.
SEBI has issued a circular providing relaxation from applicability of action due to non-compliance with MPS norms if the deadline for such compliance fell between March 01 to August 31, 2020
- By Regstreet Law Advisors
- / May 14, 2020
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