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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