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CS Executive · Capital Market and Securities Laws · Listing Obligations and Disclosure Requirements

Kaveri Pharma Ltd, a listed company, repeatedly fails to file the periodic disclosures required as listing conditions. Under Section 23E of the SCRA, 1956, what is the range of penalty for failing to comply with listing conditions?

Under Section 23E of the SCRA, 1956, a company failing to comply with listing conditions is liable to a penalty of at least five lakh rupees, which may extend to twenty-five crore rupees. The older wording without a minimum has been replaced by this range.

  1. ANot less than five lakh rupees but may extend to twenty-five crore rupeesCorrect
  2. BNot less than ten lakh rupees but may extend to twenty-five crore rupees
  3. CNot exceeding twenty-five crore rupees with no minimum amount
  4. DNot less than one lakh rupees but may extend to one crore rupees

Explanation

Section 23E, as substituted in 2014, makes a company failing to comply with listing conditions liable to a penalty of not less than five lakh rupees, extending to twenty-five crore rupees. The older wording with no minimum was replaced. The ten lakh minimum belongs to Section 15H of the SEBI Act, which deals with takeover non-disclosure.

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