Exclusively listed companies of De-recognized/Non operational/exited Stock Exchanges
Summary
This circular grants exclusively listed companies of de-recognized or non-operational stock exchanges an eighteen-month timeline to migrate to nationwide stock exchanges. It outlines specific conditions for this migration, including restrictions on shareholding changes and relaxed documentation requirements regarding No Objection Certificates. The document also mandates stricter scrutiny for promoters who fail to provide exit options and requires nationwide exchanges to establish dedicated processing cells.
Text
it has been decided to allow a time line of eighteen months, within which such companies shall obtain listing upon compliance with the listing requirements of the nation-wide stock exchange
Listing in nationwide stock exchanges is permitted only in respect of those class of securities that were already listed in the non-operational stock exchanges.
The exclusively listed companies seeking listing on nationwide exchanges shall not undergo any material changes in their shareholding pattern which suggests change of control at the time of listing on nationwide stock exchanges.
the requirement of No Objection Certificate ("NOC") or any other documents from non-operational/exited stock exchanges may not be insisted upon by the nationwide exchange which is providing the listing platform.
For the listing purpose, the company shall obtain compliance certification from any independent professionals and submit to the nationwide stock exchanges.
All the promoters and directors of such companies, who have failed to provide the trading platform or exit to its shareholders, even after the extended time of eighteen months will have to undergo stricter scrutiny for their any future association with securities market.
Any company/entity/person which proposes to make public offer or get registered with SEBI in any capacity and has/is promoter or director whose company is in dissemination board has to demonstrate that they have made adequate efforts for providing exit to their shareholders
Nationwide Stock exchange shall have a dedicated cell to process the application... applications... shall be disposed off as early as possible but not later than 2 months from the date of receipt of the application.
Until such listing, these companies shall continue to remain in the Dissemination Boards of the nation-wide stock exchanges.
The companies which are referred to the respective Registrar of Companies (RoC) by the non-operational exchanges for the purpose of declaring as 'vanishing company' may be removed from the dissemination board once the company is identified as 'Vanishing' by the Ministry of Corporate Affairs ("MCA") or RoC.
The provisions of this Circular are applicable to the exclusively listed companies of all de-recognized/non-operational stock exchanges exited/exiting (Compulsory or Voluntarily) in terms of exit circular dated May 30, 2012.
This circular is issued in exercise of powers conferred under Section 11 (1) and 11(2)(j) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Exclusively listed companies of De-recognized/Non operational/exited Stock Exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.