Business Daily from THE HINDU group of publications
Sunday, Jun 14, 2009
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Business Daily from THE HINDU group of publications Sunday, Jun 14, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Stock Markets Markets - Stocks Industry & Economy - Regulatory Bodies & Rulings Our Bureau Mumbai, June 13 A company that has incurred losses during the preceding three consecutive years and has negative net worth may be delisted by stock exchanges, says a recent amendment to the Securities Contracts Regulation Act. The Ministry of Finance has made changes to the Act to provide an operational framework for voluntary or compulsory delisting of companies; this brings it in line with the delisting regulations of the Securities and Exchange Board of India that were also notified last week. Other criteriaRule 21, which has been inserted in the SCRA, also says that a company may be asked to delist if trading in its securities has been suspended for more than six months; if trading has been infrequent during the preceding three years and if the company or any of its directors have not complied with any Act or regulation (SEBI Act, Depositories Act, etc) that governs them. Delisting may be demanded even if the address of a company’s promoters or directors is unknown or false; or if the public shareholding in it has come below the minimum level applicable to the company as per the listing agreement. In the case of a request from a company to voluntarily delist itself, recognised stock exchanges can allow them to provided the securities of the company have been listed for a minimum period of three years; and the delisting has been approved by at least two-thirds of its public shareholders; and also provided that the company, its promoter or directors purchase the outstanding securities from those holders who wish to sell them at a price determined by SEBI regulations. Delisting: Shareholders get one year to tender shares Bourses should give nod for delisting: SEBI Delisting cos must pay fair exit value: SEBI More Stories on : Stock Markets | Stocks | Regulatory Bodies & Rulings
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