Sebi on Thursday asked listed companies to settle their outstanding dues with the capital markets regulator, bourses and depositories before filing “schemes of arrangement” such as mergers and demergers with the exchanges.
The markets regulator also said listed entities will be liable for punitive action in case of furnishing any false information.
The move is part of the regulator’s effort to streamline the processing of draft schemes as Sebi has decided to seek additional information at one go.
“All listed entities shall ensure that all dues to, and/or fines/penalties imposed by Sebi, stock exchanges and the depositories have been paid/settled before filing the draft scheme with the designated stock exchange,” Sebi said in a circular.
In case of unpaid dues or fines, the listed entity will have to submit to stock exchanges a “report on the unpaid dues” having details of such unpaid dues in a prescribed format, before obtaining “observation letter from exchanges on the draft scheme. The report on unpaid dues needs to submitted by the listed entity to the exchanges along with the draft scheme.
“Any misstatement or furnishing of false information with regard to the said information shall make the listed entity liable for punitive action as per the provisions of applicable laws and regulations,” the Securities and Exchange Board of India (Sebi) said. The report on unpaid dues will be forwarded by the exchanges to Sebi before the markets regulator communicates its comments on the draft scheme to the bourses.
Besides, Sebi came out with the format to report unpaid dues of the regulator, stock exchanges and depositories. In the prescribed format, the listed entity will have to make disclosures about details of dues or fines, amount and reasons for non-payment.
Sebi on Thursday levied a total fine of Rs 12 lakh on ICICI Bank and its compliance officer Sandeep Batra for disclosure lapses, including delayed disclosure of a binding agreement signed with Bank of Rajasthan.