BSE secures action over SEBI’s suspension

The oldest national stock exchange BSE, has probably come into action after SEBI has planned to extort the suspended companies from the capital market.

The exchange has sent out communications to 509 firms advising them to initiate the process of revocation of suspension. The exchange is considering compulsory delisting of these companies from its platform in a phased manner.

While follow up letters have also been sent out in this regard, 52 companies have sought revocation of suspension and one company has sought delisting, in response to the exchange’s communication.

Besides this, show-cause notices have been issued to the firms which have not responded to the exchange’s letters.
The exchange regulator SEBI plans to push over 4,200 listed companies on a delisting mode, majorly the companies whose share are not being traded.

Earlier this year, BSE had initiated a procedure to help firms, which were suspended on account of non-compliance with listing norms, to meet the necessary regulatory requirements speedily.

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. These are estimated to be over 1,200 companies whose shares are listed on national bourses BSE and NSE, but where trading has been suspended for various non-compliance issues for over seven years.