VARIOUS VIOLATIONS OF MARKET REGULATIONS BY LISTED COMPANIES ON THE BOMBAY STOCK EXCHANGE (BSE) WHICH HAVE FACED PENALTIES, SUSPENSIONS, AND LEGAL SCRUTINY.

 VARIOUS VIOLATIONS OF MARKET REGULATIONS BY

 LISTED COMPANIES ON THE BOMBAY STOCK

 EXCHANGE (BSE) WHICH HAVE FACED PENALTIES,

 SUSPENSIONS, AND LEGAL SCRUTINY.

SUSPENSION & PENALTIES FOR NON-COMPLIANCE

1. BHARAT GLOBAL DEVELOPERS (DEC 2024):

The Securities and Exchange Board of India (SEBI) suspended trading in Bharat Global Developers after discovering a pump-and-dump scheme that inflated its stock price by over 10,000% between November 2023 and November 2024. The company was found to have made false disclosures to manipulate its stock price, benefiting only a few investors linked to its management.

2. ADANI GROUP COMPANIES (2024):

SEBI is investigating the Adani Group for potential breaches of disclosure norms and investment limits by offshore investors. A dozen offshore funds were found to have violated disclosure rules and investment limits. The regulator is also examining whether these funds acted "in concert" with the group's key shareholders. Some offshore funds have approached SEBI to settle charges by paying penalties without admitting guilt.

3. INDIAN OIL, BPCL, GAIL, AND OTHERS (2024):

Major state-owned oil companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and GAIL (India) Ltd, were fined for failing to meet listing norms, such as having the required number of independent and women directors on their boards. These companies faced fines for five consecutive quarters, with amounts ranging from  ₹2.41lakh to ₹5.36 lakh per company.

REGULATORY ACTIONS BY BSE AND SEBI

The BSE and SEBI have taken stringent actions against companies violating listing norms:

SUSPENSION OF TRADING:

Companies failing to comply with listing regulations for consecutive quarters have had their trading suspended. For instance, in 2017, BSE suspended trading in seven companies, including Bio Green Papers and Gujarat Carbon & Industries, for non-compliance with regulations. 

FREEZING OF PROMOTER SHAREHOLDING:

 In cases of non-compliance, BSE has frozen the entire promoter shareholding of the concerned companies until further notice. This measure was implemented in 2016 for companies like Gangotri Iron & Steel Company and Gupta Synthetics. 

R V SECKAR , FCS ,LLB  79047 19295