BSE to delist 36 cos from Mar 5 as shares remain suspended for over 3 yrs

Leading stock exchange BSE will delist 36 companies from next week as trading in their shares has remained suspended for over three years.

These companies will be delisted from March 5, BSE said in two separate circulars today.

They belong to various sectors ranging from textiles, chemicals, pharma and technology.

The move comes at a time when authorities are clamping down on shell companies -- listed as well as unlisted -- for being allegedly used as conduits for illicit fund flows.

In August, Sebi had directed exchanges to act against 331 suspected shell companies, while the government has already deregistered more than 200,000 firms that have not been carrying out business activities for long.

In a circular, BSE said that 28 companies, that have suspended for more than 3 years and and are under liquidation, will be delisted.

Among the firms to be delisted are Mafatlal Dyes & Chemicals, Veronica Laboratories, Polar Pharma India, Shonkh Technologies International and Bellary Steels & Alloys.

Separately, the exchange said that another eight firms would be compulsorily delisted from the platform as they have remained suspended for more than 3 years.

These eight firms are Volplast, Ashoka Cotseeds, Vijaykumar Mills, Great Western Industries, Ashoka Cotseeds, Rupal Laminates, Enviro-Clean Systems and Gandhidham Spinning & Manufacturing Co. Ltd.

Under the compulsory delisting regulations, the delisted company, its whole-time directors, promoters and group firm would be debarred from accessing the securities market for 10 years from the date of compulsory delisting.

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 BSE.

Further, these companies will be moved to the dissemination board of the exchange for 5 years as advised by markets regulator Securities and Exchange Board of India (Sebi).