The leading stock exchange of India, National Stock Exchange (NSE) have decided to take down nine companies listed. The de-listed companies include companies like ‘Lanco Infratech’, ‘Moser-Baer’ and seven others over liquidation issues with effect from October 17 this year.
The other seven companies out of the total nine includes Amar Remedies, Supreme Tex Mart, Samtel Color, Hindustan Dorr-Oliver, Servalakshmi Papper, LML and Hanung Toys and Textiles.
As per the reports of National Stock Exchange (NSE), all of these mentioned firms are “Under Liquidation”. The board said on this that the board have decided to de-list these companies that implies that the firms will not be able to “withdraw the admission to dealings”. The de-listing will be live from 17th October, 2019.
Since few months, the National Stock Exchange (NSE) were making efforts to de-list these companies. Before they are being de-listed, they had been suspended for over six months. The status of these companies on the official website of the MCA (Ministry of Corporate Affairs) were therefore listed as “under Liquidation or Liquidated”.
Sometime before in September, the National Stock Exchange (NSE) had de-listed 14 companies due to compulsory de-listing regulations. By this norm, the de-listed company, its Directors, promoters and even the group firm cannot access the securities market for as long as 10 years.
The Promoters of such de-listed companies are required to purchase the shares from public partners or the public shareholders as per the ‘fair value’ that has been determined by the independent value appointed by the Bombay Stock Exchange (BSE).
Moreover, the companies that have been de-listed will be sent to dissemination to the Board of the Exchange for five years as suggested by SEBI (Securities and Exchange Board of India).