SEBI has provided its approval to bourses to penalise listed companies in case they violate securities law.

An amendment has been made by Sebi in Issue of Capital and Disclosure Requirements (ICDR) regulations which will enable stock exchanges in taking actions such as imposition of fines and suspensions of trading.

Sebi has said in a notification that “If the listed entity fails to pay any fine imposed on it by the recognised stock exchange(s), within the period as specified from time to time, the stock exchange may initiate such other action in accordance with law, after giving a notice in writing.”

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