August 28, 2016 2:19:43 pm
Looking to deal with long-suspended listed companies in a swift manner, the National Stock Exchange has identified 140 such firms for delisting from its platform and the process is likely to be completed by October-end. Trading in these 140 companies have remained suspended for five years and more and their delisting would take place in a phased manner, a top official with the NSE told media. The National Stock Exchange (NSE), which has in the last few days already announced delisting of 34 listed companies, is planning to delist another 46 firms by end of next month.
Delisting of remaining 60 companies is also likely to be completed by October-end. “NSE will delist these companies in tranches, a total of 80 companies would be delisted by end of September, following that delisting for 60 companies would happen,” NSE chief (regulations) V R Narasimhan said.
“We have so far only identified entities in which trading has been suspended for five years and more, we are not looking at initiating delisting process against companies which have been suspended for three years,” he added. In April, NSE had named 80 companies for compulsory delisting through a public notice.
The firms, including Pyramid Saimira Theatre, had been issued show-cause notices asking why their respective equity shares “should not be delisted from the exchange”. NSE was unable to reach these firms but following the public notice, some of them have contacted the exchange. Some are going through liquidation process. Earlier this month, NSE had issued a notification stating that 14 companies would be delisted from August 31 as they were under liquidation.
On August 26, it had also said that 20 companies including Pyramid Saimira Theatre, would be delisted with effect from September 12. Under compulsory delisting, these firms would cease to be listed on the exchange and would move to the dissemination board of the exchange.
The exchange’s closest rival, BSE, has also delisted 194 companies on August 17. These entities have remained suspended for more than 13 years. Trading in shares of over 1,000 firms listed on the BSE are under suspension for a period of seven years or more.
The delisting is taking place against companies whose shares are listed on the exchanges but where trading has been suspended for various non-compliance issues for long period. Besides, there are over 3,000 companies listed on various regional stock exchanges that have become defunct.
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