Mumbai: August 16, 2016: BSE Asia’s first stock exchange and now world’s fastest exchange with the speed of 6 microseconds, had in consultation with SEBI initiated an exercise in February 2016, to urge companies that were suspended for more than 7 years at the exchange on account of various non-compliances with the Listing Agreement, to get the suspension revoked or face compulsory delisting. A Public Notice was also issued on June 23 and 24, 2016, urging companies or any other person aggrieved with the proposed delisting to make their representation to the Delisting Committee of the Exchange within 15 working days.
After considering the representation(s) of the companies and investors, the Delisting Committee of the Exchange has in the first tranche, decided to delist the securities of 194 listed companies that have remained suspended for more than 13 years.
Being mindful of the difficulties faced by investors on account of suspension of trading in listed companies, for long periods of time, the Exchange had in February, 2016 under the guidance of SEBI, written to companies which had been suspended for a period of more than 13 years to initiate and complete the process of revocation so that the investors could take suitable investment decisions. It was decided to complete the exercise in tranches, starting with companies that have remained suspended for more than 13 years on account of non-compliances with the erstwhile Listing Agreement.
After considering the representation(s) of the companies and investors, the Delisting Committee of the Exchange in terms of Regulation 22(3) of the Securities and Exchange Board of India (Delisting of Equity shares) Regulations – 2009 (“Regulations”) and as per the rules made under Section 21A of the Securities Contracts (Regulation) Act, 1956 and the Rules, Bye-Laws and Regulations of BSE Limited (“the Exchange”), has decided to delist the undermentioned 194 companies that are suspended for more than 13 years on account of non- compliance with the provisions of the erstwhile Listing Agreement, from the Exchange. A Notice in this regard has been issued today and is available on our website under the Notices tab.
This delisting would be with effect from Wednesday, August 17, 2016.
The consequences of compulsory delisting would include the following:
- These companies would cease to be listed on the stock exchange.
- The promoters of these companies would be required to purchase the shares from the public shareholders as per the ‘fair value’ to be mentioned in a Public Notice to be issued shortly.
- They would be moved to the Dissemination Board of the Exchange. It means investors will continue to have the ability to trade these stocks using dissemination board framework mandated by SEBI.
- Further, in terms of Regulation 24 of Delisting Regulations, the delisted company, its whole-time directors, promoters and group companies shall be debarred from accessing the securities market for a period of 10 years from the date of compulsory delisting.
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