Accountability drive. SEBI: Will freeze demat of directors, promoters if regulations are not followed

Palak Shah Updated - February 21, 2023 at 11:54 AM.

Market regulator believes this will result in timely compliance and payment of outstanding fines

(PIC: Reuters and Canva)

SEBI now wants to freeze the demat accounts of MD and CEO, promoters, and whole-time directors of a listed company in case of continuing non-compliance with regulations and non-payment of fines.

SEBI is of the view that this will result in timely compliance and payment of outstanding fines by listed companies and ensure that MD, WTD, and CEO are held accountable for non-compliance.

The market regulator also has proposed to give newly listed companies 15 days to disclose their first financial results post-listing on exchanges against the current provision of immediate disclosure.

Further, SEBI has proposed a three-month deadline for listed companies to fill the vacancy on their board, especially independent directors, instead of the current scenario where there is no deadline.

SEBI has even proposed a three-month timeline for filling up vacancies of compliance officers and chief financial officers from the date of such vacancies in listed companies. On all the provisions, SEBI has sought public comments till March 6.

Published on February 21, 2023 06:24

This is a Premium article available exclusively to our subscribers.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.
Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

TheHindu Businessline operates by its editorial values to provide you quality journalism.

This is your last free article.