BSE issues guidelines for suspended companies

Mindful of investors adversely impacted by suspension of trading, stock exchange BSE has framed a new procedure to help firms, suspended on account of non-compliance with listing norms, meet the necessary regulatory requirements expeditiously.

Under the procedure, BSE-listed firms are required to meet with the compliances to revoke their suspension, within a prescribed time limit, and failure to complete the process would result in compulsory delisting of such companies from the stock exchange.

BSE has noted that certain listed companies have been suspended for as much as seven years for non-compliance with the critical clauses of the listing agreement.

"The exchange has in the past written to such companies to initiate and complete the process of revocation so that the investors can take suitable investment decisions," BSE said in a statement today.

"However, the response from the companies haves been tepid," it added.

Accordingly, the exchange, to expedite the completion of all formalities for revocation, has decided on a procedure.

Under the process, letters would be issued by the exchange to such identified companies providing a consolidated list of pending compliances that would be required to be addressed in order to proceed with their revocation.

"The said compliances would need to be submitted within a specified time period of three months from the date of first communication from the exchange," BSE said.

Companies which fail to respond in 15 days of BSE's first communication would be given one last reminder letter.

"Firms are advised to reply positively within 15 days and comply with the non-compliances within 3 months," it said.

To facilitate the process of submitting the requisite documents for compliance and finally revocation, companies would have to use the 'Listing Centre portal' -- the online filing portal of the exchange.

Companies which respond positively, saying they wish to revoke the suspension of trading in their securities, would be required to complete the formalities for revocation within three months. Failing this, BSE would initiate delisting process.

On completion of the required compliances and other requirements, an in-principle approval for revocation of trading would be issued by the exchange.

Following this, firms would be required to complete formalities for resumption of trading such as payment of reinstatement fees, freezing of entire promoter holding for the period mandated by Sebi, among others.