BSE to suspend 7 company’s trading for non-compliance of Regulation 55A

BSE will suspend seven companies from trading their securities on the stock exchange from April 18 for failing to comply with certain rules for two consecutive quarters.

However, if these companies adhere to these norms by April 12, they would not be liable for suspension. The cancellation of suspension will be subject to the companies complying with the rules and regulations of SEBI.

The seven companies to be suspended from trading on the BSE include Prism Informatics, REI Six Ten Retail, Divine Multimedia (India) Ltd, Shreejal Info Hubs, Skypak Service Specialists, Subh Tex (India) Ltd and Birla Shloka Edutech.

The suspension would be done on account of non-compliance with Regulation 55A of the SEBI Regulations 1996 for almost two quarters in a row. In addition, the exchange has asked strictly to restrict the entire promoter shareholding of these firms from March 27 until the next notice.

As per SEBI’s Depositories and Participants Regulation Act, all the companies need to submit their audit report on quarterly basis to the bourse, pertaining to the total issued capital, capital held and listed capital by depositories in dematerialised form and the details of changes in share capital during that quarter.