Notice on Penalty Structure for non compliant listed companies

9^th August 2010

NOTICE

It was noticed by the Exchange that many listed companies are continuously violating the listing requirements regarding submission of periodicals/reports or payment of annual listing fees or both for a longtime. In order to provide the facility to these non-compliant companies for one time compliance, a listing Amnesty Scheme was introduced by the Exchange, in October 2009.The said listing Amnesty Scheme was closed on 30^th June 2010.

In view of the observations by the Management of the Exchange that many companies have not availed the listing Amnesty Scheme and still continuing with the non-compliances, it is decided that necessary disciplinary action be taken against such non-compliant companies. Accordingly, a decision is taken to implement the following penalty/action w.e.f. 1^st August 2010.

Sl. No.	Nature of Non-Compliance	Due date of compliance	Penalty/ Action
A. Non-compliance regarding requirement of listing agreement
1.	Non-compliance regarding submission of returns/reports for a period upto 2 years	30^th September 2010	A penalty of Rs. 10,000/- per Financial Year The management will review the status and take further decision for non compliant companies as on 30/09/2010
2.	Non-compliance regarding submission of returns/reports for a period of more than 2 years	30^th September 2010	A penalty of Rs. 10,000/- per Financial Year Automatic suspension on and from 1^st October 2010
3.	Suspension from trading	Immediate	0.001% of the Paid -Up capital per day for the number of days of suspension or listing fees for each year of suspension- whichever is higher, subject to maximum of two times the Listing Fees per year of suspension. (Interest will be charged from the date of suspension till the date of Revocation of suspension)
4.	Violation of clause 40A of Listing Agreement regarding minimum shareholding by non-promoters	31^st March 2011	0.025% of the paid up value, of excess holding by the promoters, per annum with a limit of Min. Rs.5,000/- & Max. of Rs. 25,000/- per financial year or part thereof. (Penalty will be charged for the period from 1st April 2001 or the start date of violation, whichever is later, till the date of due compliance)
5.	Listing of shares issued earlier but not yet listed with the Exchange	Immediate	1% of the pending Issue size per year of default with a maximum of Rs. 1,00,000/- (Penalty will be charged from the date of allotment till the date of listing)
B. non-compliance regarding payment of Listing Fees
1.	Non-payment of listing fees	Immediate	From the end of each financial year for which the listing fee is due till the time of full payment.

Further it is observed that many companies, in violation of clause 40A of the Listing Agreement are intending to avail the EXIT option under the SEBI (Delisting of Equity Shares) Regulations 2009. In this connection, the management has taken a decision to process the voluntary delisting application only from those companies who have been complying with all the conditions of the listing agreement with the Exchange having a material bearing on the interests of its equity shareholders; as per the provisions of Regulation 8(4)(d) of the said Regulation. However, if in-principle delisting approval is already given to any applicant on or before 30^th July 2010, final approval will be given on submission of necessary undertaking cum indemnity in the prescribed form and on payment of penalty of 0.025% of the paid up value, of excess holding by the promoters, per annum with a limit of Min. Rs. 5,000/- & Max. limit Rs. 25,000/- per financial year or part thereof, till the date of in-principle approval.

All the companies are hereby advised to take note of this Notice & to take necessary action without further delay.

Shamik Dasgupta

General Manager