BSE will 'compulsorily' delist 200 firms tomorrow
The Bombay Stock Exchange (BSE) notified via three different circulars that from tomorrow i.e. Wednesday, it will be delisting 200 firms belonging to various sectors. Furthermore, it will also ban the promoters of these firms from accessing the securities market for a period of 10 years. Here's all you need to know about it.
Which firms are being delisted?
The exchange's first circular was directed towards 117 firms that have remained suspended for more than 10 years. The circular has notified that as per SEBI regulations, promoters of these companies are required to buy shares back from the public shareholders. This buyback will be done in accordance with the fair value set by the BSE appointed independent valuer.
Who are the others?
The second BSE circular was issued for 28 firms, which are currently undergoing liquidation or have remained under suspension for more than a decade. Finally, 55 firms were addressed in the third circular informing them of their delisting from BSE, as they have been delisted from the National Stock Exchange of India.
Barring them from securities market
Moreover, BSE notified via these circulars that from the date of their compulsory delisting, full-time directors, promoters and group companies will not be allowed to access the securities market for 10 years. They will also be moved to the bourse's dissemination board for 5 years, as advised by Securities and Exchange Board of India (SEBI).