COMPLIANCE OFFICER NOT FILLEDIN WITHIN 90 DAYS OF RESIGNATION OF A COMPLIANCE OFFICER IN A LISTED COMPANY

 COMPLIANCE OFFICER NOT FILLEDIN WITHIN 90 DAYS OF RESIGNATION OF  A COMPLIANCE OFFICER IN A LISTED COMPANY

KEY CASE LAWS AND REGULATORY ACTIONS RELATED TO THE NON-APPOINTMENT OF COMPLIANCE OFFICER WITHIN 90 DAYS OF VACANCY UNDER REGULATION 6(1) OF THE SEBI (LODR) REGULATIONS, 2015:

Regulation 6(1) of the SEBI LODR mandates that every listed entity shall appoint a qualified Company Secretary as the Compliance Officer, and in case of vacancy, the same must be filled within 15 days.

SEBI ORDER AGAINST GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD :DATE: MAY 31, 2021

1. Delay in appointing Compliance Officer after vacancy.

2. Violation acknowledged and resolved without detailed adjudication.

3. Settlement Order passed by SEBI on payment of settlement fees.

 

SEBI ADJUDICATION ORDER – RUCHI SOYA INDUSTRIES LTD : DATE: AUGUST 21, 2018

 

1.       Non-compliance with Regulation 6(1) – delay in appointment of Compliance Officer.

 

2.       Penalty of ₹2 lakhs imposed for the delay.

 

SEBI ORDER IN THE MATTER OF HB PORTFOLIO LTD

DATE: FEBRUARY 2023

1.Monetary penalty imposed.

2.SEBI reiterated that even small procedural lapses regarding Compliance Officer can adversely impact governance.

OBSERVATIONS FROM SEBI:

Strict liability: Even unintentional delays attract penalties.

 

Materiality not relevant: Even a few days of delay can invite action.

Company Secretary is vital to corporate governance and investor relations — hence treated seriously.

Listed companies are advised to take note of this important rule and to avoid any penalties in future.

R V Seckar , FCS, LLB

79047 19295