Around 5,000 companies across the country have not complied with Securities and Exchange Board of India (Sebi) norms for making periodic disclosure under Sebi's Substantial Acquisition of Shares and Takeover Regulations, 1997.
In percentage terms, this works out to close to 50 per cent of the listed companies in the country. At present, 9,644 companies listed in the country on different stocks exchanges.
Out of these 5,000 companies, 3,000 are listed on the Bombay Stock Exchange. BSE has 5,782 companies listed on it. The total number of listed companies in the country are 9,644.
These companies are expected to knock Sebi's door under its amnesty scheme, called Sebi Regularisation Scheme, 2002 which is valid for three months between October 1, 2002 and December 31. The scheme would be open for companies and persons who have violated the provisions of the takeover code by not providing adequate disclosures.
The number of persons not complied are to the tune of 4,500 while 3,800 persons/companies have complied with delay. Sebi has initiated adjudication proceedings for about 150 cases.
"We are taking it up with all stock exchanges in the country. These exchanges will track down the corporates and individuals who have not complied," said a Sebi official.
The amnesty scheme is modelled on the Company Law Settlement Scheme 2000 (CLSS-2000) announced by law minister in Parliament in May 2000. Under this scheme, the Department of Company Affairs offered immunity from prosecution to companies defaulted in filing their balance sheet, profit & loss accounts as well as annual returns and other documents with the registrar of companies.
The Sebi amnesty scheme is not applicable to those cases where a penalty has already been imposed. But companies and persons whose cases are still under process can avail of the scheme, Sebi said.
Ordinarily, for violations of such a nature the penalty is Rs 5,000 payable for every day during which such failure continues. The penalty for non-disclosure of acquisition of shares is to the tune of Rs 5 lakh. Sebi said that some of these lapses occurred due to lack of knowledge or oversight.
