New Delhi, July 22 (IANS) Leading stock exchanges BSE and NSE have initiated the delisting process for companies that have been under suspension for a very long time, the government said on Friday.
“The exchanges have initiated the process of delisting those companies which have been under suspension for a very long time and have not complied with listing requirements,” Minister of State for Finance Arjun Ram Meghwal said in a written reply in the Lok Sabha.
As on date, trading in the securities of 1,707 listed companies has been suspended on NSE (National Stock Exchange) and BSE (formerly known as Bombay Stock Exchange), Meghwal said.
Under the norms, stock exchanges can compulsorily delist the equity shares of listed company in case trading in the firm has been suspended for more than six months.
The minister said shares of exclusively-listed companies of a non-operational stock exchange which do not get listed elsewhere and have been suspended for trading are placed in dissemination boards set up by BSE and NSE.
Further, it is stipulated that promoters and directors of such exclusively listed companies that fail to provide trading platform or exit to its shareholders within the specified period will have to undergo stricter scrutiny for any future association with the securities market and are also liable for other action by markets regulator Sebi, he added.