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BSE, NSE begin delisting shares of companies suspended for long

IANS  |  New Delhi 

The stock exchanges - and - have initiated the process of delisting the of companies whose trading has been suspended for a long time, the was informed on Tuesday.

"The exchanges have initiated the process of delisting those companies which have been under suspension for a long duration and hence, have not been compliant with the listing requirements," Minister of State for Finance Arjun Ram Meghwal told the Rajya Sabha in a written reply.

The equity of 1,021 companies on the Bombay Stock Exchange (BSE) and 132 companies on the (NSE) have been suspended from trading for a period of more than seven years, he said.

The Securities and Exchange Board of India (Sebi) grants powers to the recognised stock exchanges to compulsorily delist the equity of listed companies including those whose trading has remained suspended for more than six months.

Sebi states that the promoters of the compulsorily delisted company shall acquire shares from the public shareholders by paying them the fair value determined by the independent valuer, subject to their option of retaining their shares.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 29 2016. 17:58 IST