Cos not filing full disclosures face Rs 1-cr penalty

Companies delaying or not filing full disclosures with stock exchanges and with market watchdog Sebi...

Written by Press Trust Of India | Mumbai | Published: February 16, 2009 12:37:59 am

Companies delaying or not filing full disclosures with stock exchanges and with market watchdog Sebi as mandated will 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 disclosures.

“Under the Sebi Act,offenders are liable to a maximum penalty of up to Rs one crore for not filing disclosures,” the Sebi representative said at a seminar on corporate governance organised by the Institute of Company Secretaries of India (ICSI) here.

“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.

The Sebi official said many questions need to be addressed in this regard and cautioned investors not to get carried away with anyone who says he is compliant with Clause 49.

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