Sebi proposes ₹50,000 fine for non-cooperating firms
In short
Sebi has proposed a ₹50,000 fine each time a listed company does not cooperate with monitoring agencies. The plan also lets those agencies report straight to stock exchanges and may allow promoters’ demat accounts to be frozen.
This could make companies respond faster and be more accountable for money raised in public issues. The reporting does not say when the rule would start or whether it has been approved.
What the reporting says
Sebi proposed a ₹50,000 fine for each instance of non-cooperation by listed companies, with monitoring agencies able to submit reports directly to stock exchanges. The proposal also mentions possible freezing of promoters’ demat accounts and a requirement for companies to share information within prescribed timelines. The move is aimed at stronger accountability for public-issue fund use, while final implementation details are not stated in the available reporting.
Why it matters
The proposal targets listed companies and the agencies that track how public-issue funds are used. The reporting says Sebi wants a ₹50,000 penalty for each non-cooperation instance, direct reporting to exchanges, and possible freezing of promoters’ demat accounts. That would tighten compliance pressure, but the source does not say whether the plan is final or which firms would be affected first.