9911796707
TMI Blog2022 (3) TMI 1540X X X X Extracts X X X X X X X X Extracts X X X X ..... tee of the respondent BSE Ltd. wherein the company was granted 30 days time to submit all pending compliances including payment of all outstanding Exchanges dues and to complete the formalities for revocation of suspension of securities of the company as communicated by the Exchange failing which compulsory delisting against the company would be proceeded with in terms of the show cause notice. 2. The facts leading to the filing of the present appeal is, that the trading of the shares of the company was suspended by the respondent on January 07, 2002 soon thereafter the appellant became a sick company on October 28, 2002 in terms of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA" for convenience). On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this regard, we find that the regulatory framework i.e., SCR Act, Bye-laws and Regulations of the Exchange, LODR Regulations empowers the Exchange to levy fees, fines and penalties and a listed entity/ company is duty bound to pay/deposit all such fees/ charges, as applicable, to the Exchange. Pursuant to its listing on the platform of the Exchange, the listed entity/ company consented to and is obligated to make the payment of requisite annual listing fee till the time the securities are listed on the platform of the Exchange. Further, under Section 9(2) (o) of the SCR Act, recognized Stock Exchanges have been conferred the power to make Bye-laws, which can provide for the levy and recovery of fees, fines and penalties. We find that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suspension of trading in securities by companies prescribed by the Respondent. Thus, pursuant to its listing on the platform of the Exchange, the listed entity/ company consented to and was obligated to make the payment of requisite ALF till the time the securities are listed on the platform of the Exchange. The relevant provisions are set out below for ease of reference:- SCR Act "Conditions for listing. 21. Where securities are listed on the application of any person in any recognised stock exchange, such person shall comply with the conditions of the listing agreement with that stock exchange." LODR Regulations "Fees and other charges to be paid to the recognized stock exchange(s). 14. The listed entity shall pay all such fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, in each year an Annual Listing Fee computed on the basis of the capital of the Company as on 31st March and worked out as provided in Schedule II hereto annexed. The company also agrees that it shall pay the additional Annual Listing Fee, at the time of making application for listing of securities arising out of further issue, as is computed in terms of Schedule II annexed hereto for any addition in the capital after 31st March. 39. The Company agrees that in the event of the application for listing being granted such listing shall be subject to the Rules, Bye-laws and Regulations of the Exchange which now are or hereafter may be in force and the Company further agrees to comply within a reasonable time with such further regulation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay the annual listing fee. Even though, the trading was suspended, the securities of the appellant company continued to be listed on the platform of the Exchange which necessarily entails compliance with listing requirements and consequently payment of annual listing fee. Under the listing agreement the appellant is duty bound to pay the annual listing fee till such time the securities are listed on the platform of the Exchange. Admittedly, various compliances have not been made by the appellant and, consequently, the impugned order was passed. 8. The contention that since the securities of the appellant continues to remain listed during the suspension period the appellant is, thus, not liable to pay any reinstatement fee to the Exchange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Reinstatement Fee (Effective from September 27, 2017): Company suspended for < 5 years Company suspended for 5 years or more Annual Listing Fees (highest payable during the period) *number of years of suspension subject to maximum cap of Rs. 15 lakhs plus applicable tax Annual Listing Fees (highest payable during the period) * number of years of suspension subject to maximum cap of Rs.30 lakhs plus applicable tax Note: For the companies in respect of which reference has been made to or which under the BIFR reference, a relief is granted to the extent of 50% of the reinstatement fees for the period starting from the date of reference to the BIFR till the date the company has come out of BIFR reference. For the companies w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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