Bse Denies Listing To 2 Finance Firms

The Bombay Stock Exchange has denied listing to two Chennai-based finance companies.

The companies in question are Splendid Investments and CU Investments.

This is the first time that an exchange has taken stringent precautions prior to listing of a company.

While the reasons for the denial were not fully known, it was understood that the BSE has raised various objections on the ground that both the companies belong to the same promoter group.

In fact, according to BSE president M G Damani: "The companies have been promoted by a father-son duo and the merchant banker is the same in both the cases." The two companies involved had sought listing through the Chennai-based office of Sebi.

 

Damani added that since the companies declined to send replies to persistent BSE queries on many issues, the companies could not go ahead with the listing and the exchange has barred the companies from using its name in their prospectuses.

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