The National Stock Exchanges (NSE) on October 11, 2024, issued a circular regarding the mandatory Reporting of National Company Law Tribunal (NCLT) proceedings by Members.
It has come to our attention that certain clients have approached the National Company Law Tribunal (NCLT) for reliefs instead of filling their claim as per the investor grievance redressal mechanism provided by Securities and Exchange Board of India (SEBI) and the Exchange. This can result in significant depletion of a Member’s assets, potentially leaving other clients without the ability to recover their dues.
The Exchanges, in joint consultation with the Industry Standard Forum (ISF), have decided that the concerned member shall report cases admitted in NCLT against such member or its promoters to the Exchange within one week of the admission of such case.
The link for submitting such information through the member portal shall be communicated to the members through a separate circular in due course.
[Circular No: 77/2024]
