{"id":36276,"date":"2018-11-02T11:43:05","date_gmt":"2018-11-02T06:13:05","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=36276"},"modified":"2018-11-02T11:43:05","modified_gmt":"2018-11-02T06:13:05","slug":"sebi-to-move-against-non-compliant-firms","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sebi-to-move-against-non-compliant-firms\/","title":{"rendered":"SEBI to move against non-compliant firms:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/sebi-to-move-against-non-compliant-firms\/article19237069.ece\"><span style=\"font-weight: 400;\">SEBI to move against non-compliant firms<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">SEBI to <\/span><b>initiate action<\/b><span style=\"font-weight: 400;\"> against non -compliant companies which are exclusively listed on <\/span><b>Dissemination Board<\/b><\/li>\n<\/ul>\n<p><b>SEBI\u2019s norms<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">These companies were earlier listed on non-operational<\/span><b>\/ regional stock exchanges (RSEs)<\/b><span style=\"font-weight: 400;\"> and were required to be placed on DB. The ELCs were required to comply with the directions issued by <\/span><b>SEBI <\/b><span style=\"font-weight: 400;\">vide circular dated October 10, 2016.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Such companies were allowed to be part of the national exchanges through a dissemination board but were directed to submit a plan of action for listing or providing an exit option to shareholders.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Further, SEBI can bar such promoters and companies from accessing the securities market for a period of <\/span><b>10 years<\/b><span style=\"font-weight: 400;\"> apart from freezing the shares held by promoters and directors<\/span><\/li>\n<li><span style=\"font-weight: 400;\">As per regulator Sebi&#8217;s norms, firms listed exclusively on exiting or de-recognized <\/span><b>Regional Stock Exchanges (RSEs) <\/b><span style=\"font-weight: 400;\">are required to seek listing on at least any other RSE that is not seeking de-recognition and exit.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">However, those companies which fail to list on any other RSE are treated as unlisted entity and have to be moved to dissemination board.<\/span><\/li>\n<\/ul>\n<p><b>What is Dissemination board?<\/b><\/p>\n<ul>\n<li><b>Dissemination list<\/b><span style=\"font-weight: 400;\"> or <\/span><b>DB <\/b><span style=\"font-weight: 400;\">is an information <\/span><b>disseminating mechanism<\/b><span style=\"font-weight: 400;\"> made available on the bourse&#8217;s (stock market) website for buyers and sellers of companies that are listed exclusively on exiting or de-recognized <\/span><b>Regional Stock Exchanges (RSEs<\/b><span style=\"font-weight: 400;\">) and have failed to obtain listing on any RSE<\/span><\/li>\n<\/ul>\n<p><b>Way Ahead<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The deadline to submit the plan of action was extended until June 30. As per <\/span><b>SEBI<\/b><span style=\"font-weight: 400;\">, of the <\/span><b>2,000<\/b><span style=\"font-weight: 400;\"> companies listed on dissemination board as on June 30, there are 536 entities that are traceable and yet not submitted a plan of action.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">SEBI has <\/span><b>extended<\/b><span style=\"font-weight: 400;\"> the time to submit plan of action by such ELCs till <\/span><b>September 30, 2017<\/b><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>SEBI to move against non-compliant firms:\u00a0 Context SEBI to initiate action against non -compliant companies which are exclusively listed on Dissemination Board SEBI\u2019s norms These companies were earlier listed on non-operational\/ regional stock exchanges (RSEs) and were required to be placed on DB. The ELCs were required to comply with the directions issued by SEBI&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/sebi-to-move-against-non-compliant-firms\/\">Continue reading <span class=\"screen-reader-text\">SEBI to move against non-compliant firms:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-36276","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704915019},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/36276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=36276"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/36276\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=36276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=36276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=36276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}