SEBI proposes tighter action on issue-proceeds monitoring
In short
SEBI proposed stricter action against companies that block checks on how issue proceeds are used. The report says stock exchanges may fine each case by ₹50,000, and promoters’ demat accounts could be frozen if the default continues.
This matters for listed companies, promoters and investors because it would tighten oversight of fundraising money. The report does not say when the rule would start or whether it is final.
What the reporting says
SEBI proposed tighter action against companies that obstruct monitoring of issue proceeds, according to a BusinessLine market summary. The report says stock exchanges may impose ₹50,000 fines for each instance of non-cooperation and that promoters’ demat accounts could be frozen if the default continues. The draft or final status of the proposal is not stated in the available reporting.
Why it matters
SEBI proposed tighter action against companies that obstruct monitoring of issue proceeds, with reported penalties including ₹50,000 fines per instance of non-cooperation and possible freezing of promoters’ demat accounts if the default continues. The move is relevant for listed companies, promoters, stock exchanges and investors because it would strengthen compliance around fund use. The reporting does not confirm whether the proposal is final or when it would be implemented.