BSE 222 companies delisting: India’s biggest stock exchange in terms of total listed companies BSE (Bombay Stock Exchange) has delisted as many as 222 companies from its platform with effect from today, 4 July 2018. Earlier on 2 July 2018, the leading stock exchange BSE informed about the delisting of 222 companies in 2 separate notices.
Out of the 222 companies, 6 firms have been compulsorily delisted from NSE include Asian Electronic, Birla Power Solutions, Classic Diamonds (India), Innoventive Industries, Paramount Print packaging and SVOGL Oil Gas And Energy.
1) As per SEBI Delisting Regulations, 2009 the following consequences of compulsory delisting would apply to the said companies:
- The securities of these companies would cease to be listed and therefore not be available for trading on the platform of the Exchange.
- 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 Exchange, as mentioned in the Public Notice to be issued shortly.
- 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.
2) As per SEBI circular no. SEBI/HO/CFD/DCR/CIR/P/2016/81 dated September 7, 2016, till the time promoters of the Company provide an exit option to the public shareholders in terms of value determined by the Valuer, the following consequences of compulsory delisting would also apply:
- Non-transferability of any of equity shares by the Company, by way of sale, pledge, etc., of any of the equity shares.
- Freezing of equity shares and corporate benefits thereof held by the promoters/ promoter group.
- The promoters and whole-time directors of the Company shall not be eligible to become directors of any listed company.
3) These companies would be moved to the Dissemination Board of the Exchange for a period of 5 years as directed by SEBI.
Full list of 222 companies delisted from BSE
| scrip Code | Company |
| 503940 | Asian Electronics |
| 517001 | Birla Power Solutions |
| 523200 | Classic Diamonds (India) |
| 533402 | Innoventive Industries |
| 533399 | Paramount Printpackaging |
| 522175 | SVOGL Oil Gas And Energy |
| 531731 | Aarya Global Shares and Securities |
| 526955 | ABL Bio Technologies |
| 530513 | Accurate Transformers |
| 536492 | Ace Tours Worldwide |
| 533330 | Acropetal Technologies |
| 530707 | Aftek |
| 511694 | Alpine Capital Services |
| 512642 | Artillegence Bio Innovations |
| 502700 | Arunoday Mills |
| 531823 | Arvind Remedies |
| 531935 | Asean Industrial Structures |
| 524695 | Asian Fertilizers |
| 532047 | Asian Films Production & Distribution |
| 530413 | Asian Vegpro Industries |
| 500025 | Assambrook |
| 502352 | Aurangabad Paper Mills |
| 531632 | Avinash Information Technologies |
| 531783 | Azure Exim Services |
| 531733 | Bafna Spinning Mills & Exports |
| 511395 | Bala Techno Global |
| 530205 | Balaji Galvanising Industries |
| 530471 | Balaji Hotels & Enterprises |
| 500036 | Balaji Industrial Corporation |
| 531937 | Beckons Industries |
| 522136 | Bhagheeratha Engineering |
| 501815 | Bharat Line |
| 504621 | Bihar Foundry & Castings |
| 531906 | Bilati (Orissa) |
| 511607 | Birla Shloka Edutech |
| 531647 | BJ Duplex Boards |
| 507070 | BSI |
| 533304 | C Mahendra Exports |
| 511720 | Capman Financials |
| 504367 | Champion Finsec |
| 523246 | Chokhani International |
| 511086 | Cifco Finance |
| 532104 | CMS Infotech |
| 505678 | CPEC |
| 532363 | CTIL |
| 519393 | Dalmia Industries |
| 523252 | Dewan Tyres |
| 530949 | Dhar Textile Mills |
| 503978 | Digital Electronics |
| 531907 | Divine Entertainment |
| 523810 | Divine Multimedia (India) |
| 507743 | Dr Sabharwals Manufacturing Labs |
| 539786 | Dune Mercantile |
| 507528 | Eastern Sugar & Industries |
| 524788 | Elder Projects |
| 524344 | Elegant Pharmaceuticals |
| 532060 | Elque Polyesters |
| 531470 | Emporis Projects |
| 531148 | Enchante Jewellery |
| 530323 | Era Infra Engineering |
| 512163 | Extol Commercial |
| 511668 | Fact Enterprise |
| 530863 | FE (India) |
| 519187 | Fortune Foods |
| 511128 | Galaxy Consolidated Finance |
| 526679 | Galore Prints Industries |
| 530237 | Gandhinagar Hotels |
| 511489 | Gandhinagar Leasing & Finance |
| 530195 | Gazi Financial Services & Investment |
| 531601 | GCV Services |
| 530743 | GEI Industrial Systems |
| 517504 | Gem Cables & Conductors |
| 526630 | Geologging Industries |
| 531477 | Goa Fruit Specialities |
| 531709 | Gold Multifab |
| 512107 | Golkonda Engineering Enterprises |
| 500167 | Good Value Marketing Company |
| 503738 | GSL India |
| 513129 | Gujarat Wedge Wire Screens |
| 506987 | Gwalior Polypipes |
| 514370 | Harsh Polymers India |
| 502133 | Hemadri Cements |
| 519244 | Himgiri Foods |
| 526307 | Hind Industries |
| 500448 | Hindustan Development Corporation |
| 530633 | Hitkari Industries |
| 526259 | Ideal Carpets |
| 531061 | India E-Commerce |
| 506490 | Indian Electro Chemicals |
| 519222 | Indo Biotech Foods |
| 531674 | Indo-Asian Projects |
| 500208 | Indu Nissan Oxo Chemical Industries |
| 524378 | JMDE Packaging & Realties |
| 531623 | Jyoti Polyvinyl |
| 526209 | K S Oils |
| 530603 | Kandhari Rubbers |
| 532367 | Kanika Infotech |
| 530847 | Kanoria Plaschem |
| 512585 | Karma Industries |
| 531363 | Karur KCP Packkagings |
| 531976 | Kedia Infotech |
| 532758 | Kew Industries |
| 530327 | KM Capital |
| 522189 | KND Engineering Technologies |
| 531587 | Knitworth Exports |
| 526379 | Konkan Tyres |
| 514404 | Krishna Synthetics |
| 513625 | Kusum Iron & Steel |
| 530967 | Kyra Landscapes |
| 532019 | LCC Infotech |
| 531527 | Lloyd Rockfibers |
| 530039 | Lords Chemicals |
| 506041 | Mahesh Agri Impl & Ste For |
| 530497 | Marvel Capital & Finance India |
| 524770 | Maya Rasayan |
| 512253 | Meuse Kara & Sungrace Mafatlal |
| 514242 | MH Mills & Industries |
| 531942 | Millennium Cybertech |
| 530033 | Moonbeam Industries |
| 523564 | Morgan Industries |
| 513242 | MSL Industries |
| 519323 | Murli Industries |
| 531843 | MYM Technologies |
| 526831 | Naina Semiconductor |
| 530375 | Nakshatra Infrastructure |
| 500301 | NEPC India |
| 517534 | Nivyah Infrastructure & Telecom Services |
| 523670 | Noida Medicare Centre |
| 503780 | NRC |
| 517465 | Odyssey Video Communications |
| 511632 | Olympic Management & Financial Services |
| 532607 | Ontrack Systems |
| 532837 | Orbit Corporation |
| 526989 | Oriental Remedies & Herbals |
| 500318 | Oswal Spinning & Weaving Mills |
| 523389 | Oxides & Specialities |
| 523702 | Packtech Industries |
| 526345 | Panjon |
| 524055 | Panther Industrial Products |
| 532606 | Parekh Aluminex |
| 526353 | Pashupati Seohung |
| 521159 | Persian Carpet & Textiles |
| 526305 | Phelix Appliances |
| 530785 | Pitambar Coated Papers |
| 530559 | Piyush Steels |
| 531293 | Pramada Finvest |
| 531256 | Praveen Properties |
| 533100 | Premier Energy and Infrastructure |
| 505530 | Prism Informatics |
| 513630 | Rajesh Malleables |
| 519514 | Rajesh Solvex |
| 513727 | Ranjeev Alloys |
| 512397 | Ratan Glitter Industries |
| 530923 | RCL Foods |
| 524504 | Revati Organics |
| 532463 | RSL Textiles India |
| 523554 | S & S Industries & Enterprises |
| 511563 | Sanchay Finvest |
| 531625 | Sangam Health Care Products |
| 511141 | Santogen Exports |
| 512465 | Santowin Corporation |
| 522279 | Satellite Engineering |
| 511503 | Secure Earth Technologies |
| 524067 | Serene Industries |
| 526841 | Shakti Press |
| 514152 | Shamken Multifab |
| 500386 | Shamken Spinners |
| 503630 | Shell Infotech |
| 526883 | Shikhar Consultants |
| 531389 | Shree Benzophen Industries |
| 533180 | Shree Ganesh Jewellery House (I) |
| 537709 | Shree Hanuman Sugar & Industries |
| 523236 | Shrenuj & Company |
| 530913 | Shri Bhagavati Bright Bars |
| 531118 | Silverton Spinners |
| 500391 | SM Dyechem |
| 531529 | Softrak Venture Investment |
| 516038 | Soma Papers & Industries |
| 506650 | Somaiya Organics India |
| 512413 | Spectacle Ventures |
| 507918 | Sri Arumuga Enterprise |
| 521236 | Sri Ganapathy Mills Company |
| 521119 | Sri Malini Spinning Mills |
| 531152 | Stiles India |
| 536671 | Subh Tex (India) |
| 513277 | Super Forgings & Steels |
| 514260 | Surbhi Industries |
| 521022 | Suryajyoti Spinning Mills |
| 531920 | Suryoday Allo-Metal Powders |
| 501178 | Suryodaya Investment & Trading Company |
| 530753 | Suryodaya Plastics |
| 519305 | Suvarna Aqua Farms & Exports |
| 531115 | Synergy Cosmetics (Exim) |
| 533266 | Tecpro Systems |
| 532315 | Telesys Software |
| 526675 | Tirth Plastic |
| 532036 | Top Media Entertainment |
| 524484 | Trans Medicare |
| 531318 | Transcon Research & Infotech |
| 519473 | Trillenium Technologies |
| 532131 | Triumph International Finance India |
| 530321 | Unimin India |
| 522271 | Union Bearings India |
| 512205 | Vatsa Educations |
| 531894 | Vatsa Music |
| 521028 | Veena Textiles |
| 522233 | VHCL Industries |
| 506103 | Victoria Enterprises |
| 504991 | Vidarbha Iron & Steel Corporation |
| 532325 | Vital Communications |
| 530583 | Vogue Textiles |
| 531350 | Volga Air Technics |
| 512269 | Warden Construction & Finance |
| 531933 | Washington Softwares |
| 532026 | Western India Cottons |
| 531217 | Western India Shipyard |
| 538400 | MMS Infrastructure |
| 514114 | Oasis Textiles |
| 511031 | Integrated Finance Company |
| 532882 | Omnitech Infosolutions |
| 523576 | Flawless Diamond (India) |
| 531084 | Indo Bonito Multinational |
Now we will discuss the Procedure for delisting the Shares, and the Million Dollar Question; is the recovery from Promoters are possible or not; we will discuss the facts in detail are as follows
Compulsory delisting by a stock exchange:
As per Regulation 22. (1) A recognised stock exchange may, by order, delist any equity shares of a company on any ground prescribed in the rules made under section 21A of the Securities Contracts (Regulation) Act, 1956 (42 of 1956):Provided that no order shall be made under this sub regulation unless the company concerned has been given a reasonable opportunity of being heard.
(2) The decision regarding compulsory delisting shall be taken by a panel to be constituted by the recognised stock exchange consisting of –(a) two directors of the recognised stock exchange (one of whom shall be a public representative);
(b) one representative of the investors;
(c) one representative of the Ministry of Corporate Affairs or Registrar of Companies; and
(d) the Executive Director or Secretary of the recognized stock exchange.
(3) Before making an order under sub-regulation (1), the recognised stock exchange shall give a notice in one English national daily with wide circulation and one regional language newspaper of the region where the concerned recognised stock exchange is located, of the proposed delisting, giving a time period of not less than fifteen working days from the notice, within which representations may be made to the recognised stock exchange by any person who may be aggrieved by the proposed delisting and shall also display such notice on its trading systems and website.
(4) The recognised stock exchange shall while passing any order under sub-regulation (1), consider the representations, if any, made by the company as also any representations received in response to the notice given under sub regulation(3) and shall comply with the criteria specified in Schedule III.
(5) The provisions of Chapter IV shall not be applicable to a compulsory delisting made by a recognised stock exchange under this Chapter.
(6) Where the recognised stock exchange passes an order undersub-regulation (1), it shall, –
(a) forthwith publish a notice in one English national daily with wide circulation and one regional language newspaper of the region where the concerned recognised stock exchange is located, of the fact of such delisting, disclosing therein the name and address of the company, the fair value of the delisted equity shares determined under sub-regulation (1) of regulation 23 and the names and addresses of the promoters of the company who would be liable under sub-regulation (3) of regulation23; and
(b) inform all other stock exchanges where the equity shares of the company are listed, about such delisting and the surrounding circumstances.
Rights of public shareholders in case of a compulsory delisting23. (1)Where equity shares of a company are delisted by a recognised stock exchange under this Chapter, the recognized stock exchange shall appoint an independent valuer or valuers who shall determine the fair value of the delisted equity shares.
(2)The recognised stock exchange shall form a panel of expert valuers from whom the valuer or valuers shall be appointed for purposes of sub-regulation (1).
(3)The promoter of the company shall acquire delisted equity shares from the public shareholders by paying them the value determined by the valuer, subject to their option of retaining their shares. Explanation: For the purposes of sub-regulation (1), –
(a) valuer means a chartered accountant within the meaning of clause (b) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949), who has undergone peer review as specified by the Institute of 18
Chartered Accountants of India constituted under that Act, or a merchant banker appointed to determine the value of the delisted equity shares; (b) value of the delisted equity shares shall be determined by the valuer having regard to the factors mentioned in regulation 15. Consequences of compulsory delisting 24. Where a company has been compulsorily delisted under this Chapter, the company, its whole time directors, its promoters and the companies which are promoted by any of them shall not directly or indirectly access the securities market or seek listing for any equity shares for a period of ten years from the date of such delisting.
Now as per above discussion one thing is clear that, these Companies are no more active on any Recognized Stock Exchange of India, that’s mean in respect of these shares there are no market trade, so the Question is it a favorable or un-favorable position to the Public Shareholders of the Company. If you see from the law point of view that things are positive because BSE appoint an independent valuer for all these Companies; upon the basis of finalization of fair market value, Promoter’s must give exit to the Public Shareholder’s of the Company.
Now the Question is in which time frame the exit should be given to the Public Shareholders; this is big loophole in law, there is no define period in the law as per which exit should give to the Public Shareholders of the Company; in other words now it is mercy of the Promoter’s either they give or not exit to the shareholders of the Company.
As per BSE after delisting they will not monitor or control to the Promoters, now the question is:
1. Is it not BSE responsibility to first give proper exit to the Public Shareholders and then delisted the shares.
2. What would be the SEBI role after delisting the shares; how they monitor to the Promoters of the Company and ensure that Promoters should give proper exit to the existing Public Shareholders of the Company with in define time frame.
Suggestions:
Delisting of Shares is remove the share scrip from the stock exchange, but in majority of cases it will effect to the Shareholders investment, after delisting of shares Promoter’s generally not buy back the shares and not provide any proper exit to the Shareholders of the Company, I Think as per above discussion we all understand the problem, but what will be the solution of that Problem.
1. First solution is that before delisting the shares from the Stock Exchange they should give Proper exit to the shareholders of the Company because they invest in the stock through the mean of exchange and the it is prime responsibility of the exchange to give proper exit to the Public shareholders before delisting the shares from the market, SEBI should freeze all the Bank accounts and other liquid investments/ assets in the name of the Company and other Promoter Group Companies and to after encashment from all distribute the equal share between Public Shareholders.
2. If after freeze the assets there are shortage in recovery, and then ask to all the Group Promoter’s to deposit the remaining amount within 90 days time and also to restrict them that they will not move outside the country during that period.
3. If within define period they still not deposit the money , then give a final chance to them for submission of resolution plan that in how much time they will able to return the money with rate of interest.
4. If no proper submission or in default in payment then Criminal Proceedings launched and court should give their final decision on that matter within 1 year after launch of Proceedings and minimum Impronsement would be 3 years extended to 7 years along with order to liquidate the Company.
Only then, Public Shareholders able to made recovery from their investments.
In Current Scenario; with loopholes of law there is clear violation of rights of Public Shareholders, SEBI should redefine the regulations and policies regarding the delisting of Shares.
I hope SEBI will take desire steps to improve the current system and made some laws in the favour of Public Shareholders , which make them possible for recovery of their investments from delisted Companies
Author Bio
This is 100% true. This is way of open cheating with the public money. You first get your company listed, get the public money, do something bu which company may be delisted and public money is siphoned.