BSE to delist over 200 cos from May 11

BSE

Leading stock exchange BSE today said it will delist more than 200 companies from May 11 as trading in their shares has remained suspended for over six months.

The move comes at a time when authorities are clamping down on shell companies -- listed as well as unlisted -- for being allegedly used as conduits for illicit fund flows.

In August, Sebi had directed exchanges to act against 331 suspected shell companies, while the government has already deregistered more than 2 lakh firms that have not been carrying out business activities for long.

In two separate circulars, BSE said that 188 companies, that have remained suspended for more than six months would be delisted from the exchange's platform with effect from May 11. These include some firms that will be compulsorily delisted from the platform.

Separately, it said that 14 firms that have remained suspended for more than six months and are "under liquidation or liquidated" will also be delisted the same day.

The 14 firms to be delisted are -- First Leasing Company of India, Brandhouse Retails, Dujodwala Paper Chemicals, Elder Health Care, Elder Pharmaceuticals, Glodyne Technoserve, Helios and Matheson Information Technology, Hiran Orgochem, MCS Ltd, Tulip Telecom, Tutis Technologies, Vajra Bearings, Varun Industries and VTX Industries.

Under the compulsory delisting regulations, the delisted company, its whole-time directors, promoters and group firm would be debarred from accessing the securities market for ten years from the date of compulsory delisting.

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 BSE.

Further, these companies will be moved to the dissemination board of the exchange for five years as advised by markets regulator Securities and Exchange Board of India (Sebi).