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Promoters of the 200 delisted firms told to buy back shares

Whole-time directors, promoters & group cos will also be debarred from securities market for 10 yrs.

Updated: Aug 21, 2017, 10.33 PM IST
The decision comes amid heightened scrutiny of shell companies by the regulators.
The decision comes amid heightened scrutiny of shell companies by the regulators.
The Bombay Stock Exchange (BSE) on Monday announced that it would delist 200 companies from Wednesday in pursuant of an order of the delisting committee of the exchange after these stocks remained suspended from trading for over a decade.

Promoters of these delisted companies will be required to purchase the shares from the public shareholders as per the fair value determined by an independent valuer to be appointed by the exchange.

In addition to this, 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.

BSE issued three circulars in relation to delisting of these companies. The first circular pertained to 117 companies that have remained suspended for more than 10 years.

The second circular listed 28 companies that have remained suspended for more than a decade and are under liquidation.

The third circular listed 55 companies that will be delisted from BSE following their compulsory delisting from the National Stock Exchange of India.

Daewoo Motors (India), Elbee Services, Gilt Pack, Credential Finance, Ventron Polymers, Rajasthan Polyesters, Nagarjuna Finance and Murablack India are some of the companies on these lists.

The exchange took the decision amid heightened scrutiny of shell companies by the regulators. Last week, the Securities and Exchange Board of India (Sebi) directed stock exchanges to take action against 331 suspected shell companies and keep them under graded surveillance measures with immediate effect.

However, some of them such as J Kumar Infraprojects, Pincon Spirits and Parsvnath Developers later got relief from the Securities Appellate Tribunal (SAT).

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