NSE imposes over Rs 1 crore penalty on Electrosteel Steels for non-compliance of filing its financial results

New Delhi: Electrosteel Steels, which is undergoing insolvency resolution process, on Friday said the NSE has imposed a penalty of over Rs 1 crore on the company for non-compliance of filing its financial results for the quarter and year ended on 31 March, 2018, within the required time. As per regulatory norms, the company was under the obligation to submit its audited financial results for quarter and year ended 31 March, 2018, within 60 days from the end of the financial year, that is by 30 May, 2018. The company, which had requested an exemption from compliance under Regulation 33 of the Listing Obligations and Disclosure Requirements (LODR) from the Securities and Exchange Board of India (Sebi), said its request was denied on 25 June. [caption id=“attachment_4470275” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] “National Stock Exchange of India (NSE) has imposed a penalty of Rs 1,00,80,000 on Electrosteel Steels, vide its notice for non-compliance dated 15 June, 2018… The penalty was imposed for non-compliance with Regulation 33 of the LODR Regulations,” Electrosteel Steels said in a regulatory filing. Electrosteel Steels, however, said pending Sebi’s response to the exemption application filed by the company, the aforementioned penalty was imposed by NSE. “The company is reviewing NSE’s letter and seeking appropriate legal advice,” it added. Last month, metal and mining giant Vedanta had acquired the management control of debt-laden Electrosteel Steels. As per the resolution plan submitted by Vedanta, Electrosteel Steels will be delisted from Indian stock exchanges - NSE and BSE. In March this year, Vedanta was declared as successful resolution applicant by the committee of creditors (CoC) for Electrosteel Steels under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016. National Company Law Appellate Tribunal (NCLAT), however, has said that any steps over Electrosteel would be subject to the outcome of its final decision.