The Bombay Stock Exchange (BSE) announced today that it will be delisting 200 companies, starting this Wednesday, August 23. The delisted companies will no longer be able to use the BSE platform for stocks trading. The list of 200 companies that are to be delisted include 117 companies that have remained suspended for more than 10 years. These would be delisted from the BSE platform, starting from August 23, 2017. There are 28 other companies that have also remained suspended for more than 10 years and currently they are under liquidation. These companies will also be delisted from August 23. There are another 55 companies that will face delisting from August 23. Their delisting is pursuant to order of the “Delisting Committee of the Exchange”.
The delisting is being done as the delisting regulations 2009 created by the Securities and Exchange Board of India (SEBI). The stocks of delisted companies will be removed from active trading and no transactions will take place from August 23. In a statement issued by BSE, it said that promoters of the delisted companies will have to buy the shares from the public shareholders. The value of the shares will be determined by an independent valuer that will be appointed by the exchange. “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,” the statement said.