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Bourses begin delisting shares of cos suspended for long

Press Trust of India  |  New Delhi 

Leading stock exchanges and have initiated the delisting process for companies that have been under suspension for a very long time, was informed today.

As on date, trading in equity of 1,021 companies on the and 132 firms on the have been suspended for more than seven years, Minister of State for Finance, Arjun Ram Meghwal said in a written reply to the

"The exchanges have initiated the process of delisting those companies which have been under suspension for a very long time and have not complied with listing requirements," he added.

Under the norms, stock exchanges can compulsorily delist the equity of listed company in case trading in the firm remains suspended for more than six months.

In August, (formerly known as Bombay Stock Exchange) delisted 194 companies, while (NSE) announced delisting of 48 firms during August-November.

According to rules, promoters of the compulsorily delisted company would have to acquire 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. 15:32 IST