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Penal provisions for non compliance of cl. 41 of LA

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Penal provisions for non compliance of cl. 41 of LA

Postby RANJEET » Fri Apr 18, 2008 12:28 pm

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Hi friends,

What are the Penal provisions for non compliance of cl. 41 of LA. Please guide me about provisions applicable in this case.

Thanks & Regards
Ranjeet Kaur
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby RAMAN KUMAR JHA » Fri Apr 18, 2008 1:28 pm

Hi Ranjeet

Not complying clause 41 of LA listed company can be delisted .
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby RANJEET » Fri Apr 18, 2008 2:22 pm

Hi Raman,

Thanks for prompt reply Raman. Any provision of SEBI ACT will be applicable or not, like penal provision in Sec 15 penalties and Adjudication , Sec 27 offences by Companies.

Thanks & Regards
Ranjeet Kaur
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby RAMAN KUMAR JHA » Fri Apr 18, 2008 2:59 pm

Dear Ranjeet

Listing Agreement is due to provisions of SCRA Act therefore you are requested to refer the same.
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby RANJEET » Fri Apr 18, 2008 3:20 pm

Thanks Raman

Regards
Ranjeet Kaur
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby yogesh chande » Mon Apr 21, 2008 9:15 am

Dear Raman,

Company will not be "delisted" for non-compliance with clause 41 of the listing agreement.

Please note that delisting is the last of the recourse adopted by Stock Exchange. This will affect the shareholders of the company. It's easy to say "delisting" but not so easy to implement.

Non-compliance of various clauses of listing agreement and not taking adequate steps to regularise the same by the company would lead to "suspension" in trading of the securities of the company.

Post suspension, after a certain period the company is "delisted".

Listing Agreement is goverened by provisions of SEBI Act read with SCRA, 1956.

Kind regards,
Yogesh
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby RAMAN KUMAR JHA » Mon Apr 21, 2008 11:04 am

Dear Yogesh Sir

I agree with you. First suspension of trading thereafter delisting.

Even in case suspension of trading, company as well as its shareholder will suffer.

Conclusion we must comply clause 41.

With regards
Raman
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby Chetanfumakiya » Mon Apr 21, 2008 4:45 pm

Dear All,

Please refer to Section-23E of the SCRA which provides for the adjudication in case of non compliance of the provisions of the listing agreement.

Regards,
Chetan fumakiya
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby snswamyfcs1956 » Tue Apr 29, 2008 6:29 pm

DEAR EXPERT PROFESSIONALS

IF A COMPANY'S SHARES ARE LISTED ONLY IN HYDERABAD STOCK EXHANGE ETC, WHO WILL NOT SEND ANY ACKNOWLEDMENTS, ANY DOCUMENTS, TO THE COMPANY, AND ALSO THERE ARE NO TRADING AT ALL, INTHE SCRIPT
HOW TO ENSURE THIS LISTING AGREEMENT 41 ETC

IS THERE ANY WAY TO ACT IN THIS CIRCUMSTANCES.

SINCE THE COMPANY'S FINANCIALS ARE NOT OKAY FOR NSE LISTING, ETC, WHAT IS OTHER WAY TO COMPLY WITH

ANY GUIDELINES IN THIS REGARD

S.NARAYANASWAMY
learn as much as possible every day to stay fit in the field
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby kavithag » Wed Dec 29, 2010 2:22 pm

Dear All,
As per clause 41 ammended as on April 2010 , the companies need to file their audited reports within 60 days, meaning as on 29may 2010 the financial reults should be approved in the board meeting. however my question is if the board meeting is not held before the 60 days period, which is a breach of the clause 41 of listing agreement then what is the consequence and remedy for the above. As per SCRA sec 23E the penalty is of Rs25 crores.
http://www.csstudentsonlineclub.com/wp- ... eement.pdf
it is not right to pay a fine of 25 crores for a delay in 1 day . so what is the remedy
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Re: Penal provisions for non compliance of cl. 41 of LA

Postby kavithag » Wed Dec 29, 2010 2:23 pm

kavithag wrote:Dear All,
As per clause 41 ammended as on April 2010 , the companies need to file their audited reports within 60 days, meaning as on 29may 2010 the financial reults should be approved in the board meeting. however my question is if the board meeting is not held before the 60 days period, which is a breach of the clause 41 of listing agreement then what is the consequence and remedy for the above. As per SCRA sec 23E the penalty is of Rs25 crores.
http://www.csstudentsonlineclub.com/wp- ... eement.pdf
it is not right to pay a fine of 25 crores for a delay in 1 day . so what is the remedy
kavithag
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Joined: Wed Dec 29, 2010 11:48 am

Re: Penal provisions for non compliance of cl. 41 of LA

Postby pcj_acs » Sun Jan 02, 2011 2:19 pm

In one of my previous company we faced this problem, though we had given notice of book closure but BSE suspended trading in our shares without any show cause notice. We had to pay resoration charges @1% of paid up capital for each day of suspenson it was readmitted.

Thanks & Regards

P.C. Joshi
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