The companies are being penalized for not submitting their reports to the board in time. The board decided to penalize Rs 50,000 to Rs 100,000 to the companies.
Previously, the board never took such stern action against the companies. As per Ramesh Hamal, CEO of SEBON, the reports make huge significance in stock pricing in the secondary market. Thus, we are tightening the companies to make them publish their reports in time.
The step is also taken to make the companies responsible and maintain corporate governance, he added.
The companies are required to submit their quarterly report to SEBON within 30 days from the end of the quarter. Moreover, they are also required to publish the reports in national-level daily newspapers.
Moreover, the companies are required to submit their half-yearly report to SEBON within five months of the end of the period.
Upon failure, the companies are required to inform the board in advance.
