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BSE files bankruptcy case against 7 companies to recover dues

As of now only banks, mutual funds and operational creditors have taken the IBC route to recover their dues.

December 13, 2017 / 11:07 AM IST
 
 
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The BSE has become the first stock exchange in the country to drag seven firms listed on its platform to National Company Law Tribunal (NCLT) for failure to pay annual listing fees (ALF) even after granting them sufficient time and sending several reminders in the past few years.

"In the interest of Investors who may be trading in such Companies, it has become incumbent to initiate action against such listed Companies defaulting in payment of listing fees, under the Insolvency and Bankruptcy Code, 2016 (‘Code’)," the exchange said in a statement.

The defaulting firms against which BSE has initiated action are Neo Corp International Ltd, S. Kumars Nationwide Ltd, Asahi Infrastructure & Projects Ltd, Mavi Industries Limited, Tricom India Ltd, Twinstar Industries Limited and Sezal Glass India. It intends to take similar action against others defaulting companies.

As of now only banks, mutual funds and operational creditors have taken the IBC route to recover their dues.

BSE charges a minimum annual listing fee of Rs 250,000 for firms having an equity capital up to Rs 100 crore and it goes up to Rs 10,20,000 for companies having Rs 3,000 crore equity capital. From thereon, there is Rs 3,910 levied for every additional Rs 5 crore or part thereof.

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The move comes amid a push by the government and judicial and regulatory authorities to resolve the country's burgeoning bad debt situation.

The RBI has asked banks to refer tens of companies with large non-performing assets (NPAs) to the National Company Law Tribunal (NCLT), the principal body looking into insolvency cases.

Separately, courts have struck down several appeals by companies requesting their admission to the list of insolvent companies be stayed.

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