Compulsory De-listing of scripts from National Stock Exchange

India’s stock market regulator SEBI ordered to suspend more than 90 companies to be compulsorily delisted from the stock markets. This time there are certain companies which are listed on the National Stock Exchange.

Delisting Regulations

As per the delisting regulations, 2009, of the Securities and Exchange Board of India Act, after the compulsory delisting of the share :
  1. The securities of these companies would cease to be listed and therefore not be available for trading on the platform of the exchange.
  2. Promoters of these delisted companies will be required to purchase the shares from the public shareholders as per the fair value determined by the independent valuer appointed by the exchanges
  3. Further, 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.

It is essential to track these companies and their promoters for next ten years if they are using the corporate veil to come back to stock markets.

Earlier in the month of August, Securities regulator had delisted another 200 companies which included

  • Eupharma Laboratories
  • Athena Financial Services
  • Magnus Rubber Industries
  • Rajasthan Polyesters
  • Transpower Engineering
  • Dupont Sportswear
  • Dynavox Industries
  • GDR Media.