BSE to delist 200 companies from August 23

With effect from August 23, 2017, the BSE will restrict promoters of 200 companies from accessing the securities market for 10 years. A list of these companies was issued by the BSE on Monday and as per a statement from the exchange, according to the SEBI Delisting Regulations, 2009, the following consequences of compulsory delisting would apply to these companies:
  
1. The securities of these companies would cease to be listed and therefore not be available for trading on the exchange.

2. Promoters of these delisted companies will be required to purchase the shares from public shareholders as per the fair value determined by the independent valuer appointed by the exchange, as mentioned in the public notice to be issued shortly.

3. Further, in terms of Regulation 24 of Delisting Regulations, the delisted company, its whole-time directors, promoters, and group companies shall be debarred from accessing the securities market for a period of 10 years from the date of compulsory delisting.
 
Till the time promoters of these companies provide an exit option to the public shareholders in terms of the value determined by the valuer, the following consequences of compulsory delisting would also apply:

1. Non-transferability of any of equity shares by the company, by way of sale, pledge, etc., of any of the equity shares.

2. Freezing of equity shares and corporate benefits thereof held by the promoters/promoter group.

3. The promoters and whole-time directors of the company shall not be eligible to become directors of any listed company.