Freeze demat accounts of MDs and CEOs for non-compliance, says Sebi

Regulator proposes to beef up listing obligations and disclosure norms

The Securities and Exchange Board of India (Sebi) has proposed beefing up listing obligations and disclosure norms in areas such as result-filing by newly-listed companies, expediting appointments of key managerial positions (KMPs) and action on key people in case of non-compliance.

In a consultation paper, the market regulator proposed that the demat accounts of the whole-time directors, including the managing directors and chief executive officers (MD & CEOs) should be frozen, in  addition to  the demat accounts of the promoters, for continued non-compliance.

At present, regulations require freezing of demat accounts only of the promoters in case of non-compliance or