Consequences for non-payment of outstanding Annual Listing Fees for FY 2020-21

Listed Companies - Be Alert !!

NSE and BSE both vide Circular Ref No: NSE/CML/2020/53 and notice no. 20201106-39 dated 06.11.2020, respectively have issued circular stating Action(s) to be initiated against listed companies for non-payment of outstanding Annual Listing Fees (“ALF”) for Financial Year 2020-21.

This Circular has been issued to:

The Company Secretary / Compliance Officer

(To all Companies who have not paid Annual Listing Fees)

The following action shall be taken if a listed company (being Defaulted Company) fail to pay the outstanding ALF (including the listing fee for Financial Year 2020-21) on or before November 20, 2020, in the manner mentioned below:

Action w.e.f. November 23, 2020:

Note:

• It may be noted that the aforesaid action(s) are initial in nature and the same does not preclude the Exchange from taking further stringent action(s) against the defaulting companies as notified by the Exchange from time to time.

• Above action would also apply to Small and Medium Enterprises (SME) companies listed on the Exchange who have defaulted in paying ALF for Financial Year 2020- 21

The measures listed above, would not apply to the following (exclusions)

• Public Sector Undertaking (PSU) companies
• Companies who have been admitted by Hon’ble National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code.
• Companies that have only Debt/Mutual Funds listed on the Exchange.
• For the computation of the total outstanding amount ALF, tax deducted at source (TDS) would be excluded.
• In case the company is commonly listed i.e. on more than one Stock Exchange, actions such as transfer to Trade to Trade segment and reversal of these actions shall be done in coordination by the Exchanges where the company is listed.

Links of the Circulars:

• For NSE: https://static.nseindia.com//s3fs-public/inline-files/NSE_Circular_06112020_0.pdf
• For BSE: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20201106-39

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