HYDERABAD, July 15: The Hyderabad Stock Exchange plans to impose fine on companies that adopt a lackadaisical approach on providing statutory reports and fail to communicate vital information to the designated stock exchanges from time to time.

According to sources, the HSE governing board rec0ently discussed the matter and is likely to levy a fine at Rs 500 per day. The board is also planning to amend the listing agreement by incorporating the penalty clause.

The exchange authorities feel that suspension of the erring company from trading alone cannot make it comply with the regulations. According to sources, HSE is yet to forward the draft proposal to SEBI for final approval. In fact, the proposal to levy penalty on the erring companies was put forward before the governing board by the investor protection cell.

It may be recalled that SEBI officials reportedly issued summons to 12 Andhra Pradesh based companies as the market regulator had received maximum number of complaints against them.

However, only four companies attended the meeting while the remaining companies ignored SEBI's summon and failed to turnup at the meeting.

However, SEBI again wants HSE to intimate these companies and if they again fail to turn up, then it plans to initiate prosecution against them.

It may be recalled here that out of 800 odd listed companies, an overwhelming majority is yet to submit second six monthly results.

The exchange had also issued notices to these companies to submit their results on or before July 5. However, HSE notice has failed to elicit response from a number of a companies. Besides, there are companies which have failed to pay any dividend for fiscal 1995-96 despite announcement for the same. SOL Pharma, Kitti Steels and Nayagara Paper fall under this category.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.