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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

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One Comment

  1. Umesh Khandelwal says:

    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.

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