Consequences for non-payment of outstanding Annual Listing Fees for FY 2020-21
Listed Companies – Be Alert !!!!!
NSE and BSE both vide Circular Ref No: NSE/CML/2020/53 and notice no. 20201106-39 dated 06.11.2020, respectively has issued circular stating Action(s) to be initiated against listed companies for non-payment of outstanding Annual Listing Fees (“ALF”) for Financial Year 2020-21.
This Circular has been issued to:
The Company Secretary/Compliance Officer
(To all Companies who have not paid Annual Listing Fees)
The following action shall be taken if a listed company (being Defaulted Company) fail to pay the outstanding ALF (including the listing fee for Financial Year 2020-21) on or before November 20, 2020, in the manner mentioned below:
|Ø The name of the defaulting companies shall be displayed on the Exchange website.||Ø The names of the defaulting companies shall be displayed on the website of BSE Limited on a separate page to highlight the Companies’ failure to pay the ALF.|
|Ø On the company’s individual get quote page on the Exchange website, a message shall be displayed saying, “Company has not paid Annual Listing Fees and is in violation of SEBI Regulations & Exchange Requirements”||Ø On the defaulting companies’ individual stock reach page on the website of the Exchange, a message shall be displayed stating that, “Company has not paid Annual Listing Fees and is in violation of SEBI Regulations & Exchange Requirements.”|
|Ø On the submission portal, whenever company logs in for submitting disclosures, a similar message would be displayed.||Ø A similar message will also be displayed as a running ticker on the electronic portal of the Exchange, whenever the defaulting companies will log in for submitting disclosures.|
|Ø The equity shares of the company shall be moved from Normal Rolling Segment (Series: EQ) to Trade to Trade Segment (Series: BE). A notice to this effect will also be issued to all market participants.||Ø The equity shares of the defaulting companies shall be moved from Normal Trading to Trade to Trade segment (i.e. gross settlement) for which a 7 days’ notice will also be issued to all the market participants.|
The measures listed above, would not apply to the following (exclusions):
Links of the Circulars:
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