Indian exchanges fine major companies for listing noncompliance

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Indian exchanges fine major companies for listing noncompliance

MUMBAI - In a significant enforcement of listing regulations, India's stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), have imposed fines on several high-profile companies for failing to comply with the required standards. Among those penalized are energy giants such as Oil and Natural Gas Corporation (NSE: ONGC), Adani Green Energy (NSE: ADANIGREEN), Indian Oil Corporation (NSE: IOC), and Bharat Petroleum (NSE: BPCL), as well as mining conglomerate Vedanta Ltd. (NSE: NYSE: VEDL ). Each company has been fined Rs 5 lakh due to these infractions.

Adani Green Energy faced additional scrutiny, with individual fines amounting to Rs 5.61 lakh imposed on Monday for specific listing violations. The company publicly acknowledged the total penalties of Rs 11.22 lakh in a regulatory filing on Tuesday. This series of fines follows Adani Green Energy's compliance achievement on Thursday, September 7, 2023, when they appointed two independent directors as per the Securities and Exchange Board of India (SEBI) Regulations.

The enforcement action extended beyond these major players, with smaller fines levied on a range of other companies for similar breaches. These include GAIL Ltd. (NSE: GAIL), Hindustan Petroleum Corp. (NSE: HINDPETRO), Ircon International (NSE: IRCON), Hindustan Zinc Ltd. (NSE: HINDZINC), Indian Railway Finance Corp., Garden Reach Shipbuilders & Engineers Ltd., and others.

Adani Enterprises (NSE: ADANIENT) was fined Rs 34k, while healthcare provider Max Healthcare Institute Ltd. (NSE: MAXHEALTH) received a fine of Rs 2.36 lakh. Other companies such as R Systems International Ltd. (NSE: SYSTEMS), Subex Ltd. (NSE: SUBEXLTD), Raj Rayon Industries Ltd., and Hindustan Composites Ltd. were also fined varying amounts for non-compliance.

These penalties underscore the commitment of Indian regulatory authorities to uphold corporate governance standards and ensure transparency in the functioning of publicly listed companies. The fines serve as a reminder to all market participants about the importance of adhering to SEBI's regulations and maintaining rigorous compliance practices.

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