Freeze demat accounts of MDs and CEOs for non-compliance, says Sebi

Regulator proposes to beef up listing obligations and disclosure norms

Khushboo Tiwari Mumbai
Illustration: Binay Sinha

Illustration: Binay Sinha

The Securities and Exchange Board of India (Sebi) has proposed beefing up listing obligations and disclosure norms in areas such as result-filing by newly-listed companies, expediting appointments of key managerial positions (KMPs) and action on key people in case of non-compliance.
In a consultation paper, the market regulator proposed that the demat accounts of the whole-time directors, including the managing directors and chief executive officers (MD & CEOs) should be frozen, in  addition to  the demat accounts of the promoters, for continued non-compliance.
At present, regulations require freezing of demat accounts only of the promoters in case of non-compliance or non-payment of fines. The proposed rule change will address cases where listed companies are professionally-managed and do not have an identifiable promoter.

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First Published: Feb 21 2023 | 3:46 PM IST

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