Companies exclusively listed on De-recognized/Non-operational Stock Exchanges
Summary
This circular addresses the exit options for companies exclusively listed on stock exchanges that failed to meet prescribed turnover norms. It mandates that such companies may opt for listing on nation-wide exchanges or pursue voluntary delisting before the de-recognition of their current exchange. The document outlines specific procedural requirements and exemptions, including relief from minimum public shareholding rules for voluntary delisting.
Text
SEBI shall proceed with compulsory de-recognition and exit of stock exchanges not achieving Rs 1000 Crore turnover or applying for voluntary surrender within two years.
The provisions of this Circular are applicable for all those stock exchanges which have not achieved the prescribed turnover of Rs. 1000 Crore on continuous basis on or before May 30, 2014.
The exclusively listed companies of such non-compliant stock exchanges may opt for listing in nation-wide exchanges after complying with listing norms... Nation-wide stock exchanges shall facilitate the listing of these companies on priority basis...
Such exclusively listed companies may also opt for voluntary delisting before the de-recognition of the stock exchanges by following the existing delisting norms of SEBI...
For such companies as referred to at Para 2(ii) above, the requirements of ‘Minimum Public Shareholding’ prescribed in Rules 19(2)(b) and 19A of the Securities Contracts (Regulation) Rules, 1957 and Clause 40A of the Listing Agreement, shall not be applicable.
In case of companies exclusively listed in the non-operational stock exchanges that are not traceable or where the data available is more than three years old, the process of inclusion in list of companies identified as 'Vanishing' ... may be initiated by the respective stock exchanges.
It shall be the responsibility of the exchanges which are being derecognized either on voluntary or compulsory basis, to place their exclusively listed companies on the dissemination board.
Source: SecMarx — Companies exclusively listed on De-recognized/Non-operational Stock Exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.