{
  "id": 14391632,
  "title": "SEBI proposes tighter action against companies that obstruct issue-proceeds monitoring",
  "url": "https://urgent.news/2026/10/14/sebi-proposes-tighter-action-against-companies-that-obstruct-issue",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-14T07:17:24.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/sebi-proposes-tighter-action-against-companies-that-obstruct-issue-proceeds-monitoring/article71582658.ece"
  },
  "original_language": "en",
  "account": "The Securities and Exchange Board of India (SEBI) has suggested more stringent measures against listed companies that fail to cooperate with agencies monitoring the use of funds raised through public offerings. This could include fines and the possible freezing of promoters' demat accounts. Under the proposed changes, stock exchanges would levy a fee of ₹50,000 for each instance of non-compliance reported by a monitoring agency during a reporting period. Companies would have 30 days to respond to compliance notices, and if they fail to comply or pay the fine within 15 days, exchanges would notify their promoters. If the default persists, exchanges would inform depositories to freeze the promoters' demat accounts. SEBI is also proposing that companies cannot terminate their agreements with monitoring agencies or replace them until they address the non-compliance issue. Monitoring agencies would be able to submit reports directly to exchanges if companies are not cooperative, with these reports highlighting the lack of cooperation. SEBI is reviewing the framework for monitoring and disclosing issue proceeds under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has invited public comments until November 3.",
  "summary": "Stock exchanges may impose ₹50,000 fines for each instance of non-cooperation, with promoters’ demat accounts potentially frozen if the default continues",
  "key_points": [
    "SEBI proposes stricter penalties for non-cooperative listed companies.",
    "₹50,000 fee per non-compliance instance for stock exchanges.",
    "Promoters' demat accounts could be frozen for repeated non-compliance."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}