LIST/COMP/OPS/02/2019-20 April 05, 2019
The Company Secretary / Compliance Officer / The Promoters
(To all companies who have not paid outstanding Annual Listing Fees)
Sub: Action(s) to be initiated against listed companies for non-payment of outstanding Annual Listing Fees (“ALF”)
It is noticed that despite the requirement to pay ALF in timely manner by listed companies as informed vide circulars issued by the Exchange from time to time, several listed companies have failed to pay ALF to the Exchange within the prescribed time (“hereinafter referred to as defaulting company”).
Considering the above, the Exchange has decided to proceed to initiate the following actions against the defaulting company, which has failed to pay all outstanding ALF including the fee payable for Financial Year 2018-19, on or before April 13, 2019, in the manner mentioned below:
A] Below mentioned action(s) will be taken against the defaulting company w.e.f. April 15, 2019:
1. The name of the defaulting company would be displayed on the Exchange’s website on a separate page.
2. The defaulting company’s stock reach page on the website of the Exchange would be shown in “RED” color and a ticker would be flashed continuously across the screen stating, “This company has not paid the Annual Listing Fees to the Exchange in violation of SEBI (LODR) Regulations and Rules, Bye-laws and Regulations of the Exchange”.
3. As and when the defaulting company logs in to the Listing Centre portal of the Exchange, a ticker would be flashed continuously across the screen stating, “The company has not paid the outstanding Annual Listing Fees to the Exchange”.
4. The trading in the equity shares of the defaulting company would be transferred to Trade-To-Trade mode with price band of 5% or lower as applicable. Please note that Trade-To Trade Mode does not permit netting of the trades.
5. The trading in the equity shares of the defaulting company will be moved to a “CALL AUCTION” basis w.e.f. May 15, 2019 if the defaulting company fails to pay the outstanding ALF.
6. If the defaulting company fails to pay the outstanding ALF as on July 15,2019, in addition to the aforesaid action(s), an administrative fee of Rs. 50,000/- (which shall be reviewed from time to time) will be levied upon the defaulting company for every filing sought to be done by the defaulting company on the Listing Centre portal of the Exchange under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) except for those required or contemplated under Regulation 30 of Listing Regulations dealing with Unpublished Price Sensitive Information). The defaulting company shall be required to pay such administrative fee UPFRONT through online payment gateway on the Listing Centre portal of the Exchange. The defaulting company will be able to submit the filings through the Listing Centre portal of the Exchange upon an intimation of payment of said administrative fee to the Exchange along with requisite proof sent only at listingfees@bseindia.com. Please note that any other mode of filings made by the defaulting company other than through prescribed mode i.e. Listing Centre portal shall not be considered by the Exchange. Consequentially, any default(s)/action(s) arising thereof due to non-payment shall be at the cost and consequences of such defaulting company.
B] Action(s) enumerated below will be taken against the defaulting company w.e.f. July 01, 2019:
1. The trading in the equity shares of the defaulting company would be restricted to once a week (i.e every Monday) and shall continue to be in Trade to Trade segment, which shall attract levy of 100% margin, in addition to action(s) mentioned in clause 4 above, for a period of one month i.e. till July 31, 2019.
2. If the defaulting company does not pay the outstanding ALF by July 31, 2019, then trading in the equity shares of such defaulting company will be restricted to only once a month (i.e first Monday of the month) w.e.f August 01, 2019 wherein the trading would take place only in Trade For Trade mode and shall attract levy of 100% margin, gross settlement and 5% price band or as applicable, for a period of 3 months.
3. If the defaulting company does not pay the outstanding ALF within a period of 3 months from November 01, 2019, then the demat account of all the promoters of the defaulting company shall be frozen w.e.f February 01, 2020 till the outstanding ALF has been satisfied.
4. Such defaulting company may follow the process as mentioned in the Clause A(6) above for submitting their filings to the Listing Centre of the Exchange.
Kindly note that the Exchange reserves its right to initiate appropriate proceedings against listed companies that have failed to make pay the outstanding ALF.
Yours faithfully
Girish Joshi Tushar Kamath
Chief General Manager Dy. General Manager
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