NSE decides to take actions against listed companies for non-payment of outstanding Annual Listing Fees

Jun 13, 2019 | by Avantis RegTech Legal Research Team

The National Stock Exchange of India (NSE)  on June 11, 2019, have decided to take actions in case the companies fail to pay the outstanding Annual Listing fee (ALF) for the financial year 2019-20, on or before August 31, 2019.

It is notified that the measures would also apply to Small Medium Enterprise (SME) companies listed on the Exchanges that are in default for paying annual listing fees. The following actions will be taken:

1. Actions with effect from September 01, 2019: The name of the defaulting companies shall be displayed on the Exchange website. The equity shares of the company shall be moved from Normal Rolling Segment to Trade to Trade Segment and a notice to this effect will also be issued to all market participants.

2. Action with effect from December 01, 2019 if the company continues to remain in default: Demat accounts of the Promoter and Promoter Group of the Company shall be frozen for all debits.

3. Action with effect from March 01, 2020 if the company continues to remain in default: Trading in the equity shares of the company shall be suspended.

4. Action with effect from September 01, 2020 if the company continues to remain in default: Since the company would be suspended for a period of more than 6 months on account of violation of the Listing Regulations, it would be eligible for Delisting as per the extant SEBI (Delisting of Equity shares) Regulations.

The measures listed above, would not apply to the following:

1. PSU companies 

2. Companies admitted by NCLT under the Insolvency and Bankruptcy Code. 

3. Companies that have only Debt/Mutual Funds listed. 

4. For computation of the total outstanding amount TDS deducted would be excluded. 

5. In case the company is commonly listed that is on more than one stock exchange actions such as transfer to Trade to Trade segment, freezing demat accounts of promoter and promoter group, suspension and compulsory delisting of equity shares and reversal of these actions shall done in coordination by the Exchanges where the company is listed.

[Ref No. NSE/CML/2019/12]

Click here to download to Circular.



Related Updates

Alternate Text

Get updates on the go on RuleZbook Mobile App.