The NSE delisting comes at a time when Sebi is clamping down on shell companies for being allegedly used as conduits for illicit fund flows
Last Published: Mon, May 21 2018. 01 20 PM IST
Kingfisher Airlines is the defunct airline of fugitive Vijay Mallya. NSE’s delisting move comes after BSE delisted over 200 companies from 11 May as trading in their shares remained suspended for over six months. Photo: Ramesh Pathania/Mint
New Delhi: National Stock Exchange has decided to delist Vijay Mallya-promoted Kingfisher Airlines Ltd and Plethico Pharmaceuticals Ltd and 16 other companies from 30 May.
NSE’s delisting move comes after BSE delisted over 200 companies from 11 May as trading in their shares remained suspended for over six months.
The decision comes at a time when authorities are clamping down on shell companies—listed as well as unlisted—for being allegedly used as conduits for illicit fund flows.
In August, markets regulator Securities and Exchange Board of India (Sebi) had directed the exchanges to act against 331 suspected shell companies, while the government has already deregistered more than 2 lakh firms that have not been carrying out business activities for long.
In its latest circular, NSE said it has “decided to delist (withdraw the admission to dealings in) the equity shares of companies with effect from May 30, 2018 which have been compulsorily delisted by BSE Ltd”.
Apart from Kingfisher Airlines and Plethico, the other firms that will be delisted are Agro Dutch Industries, Broadcast Initiatives, Crest Animation Studios, KDL Biotech, Kemrock Industries and Exports, Lumax Automotive Systems, Nissan Copper, Shri Aster Silicates and Surya Pharmaceuticals.
In addition, NSE said seven firms will be delisted due to liquidation on the same day. These firms are Brandhouse Retails, Elder Pharmaceuticals, First Leasing Company India, Glodyne Technoserve, Helios and Matheson Information Technology, Tulip Telecom and Varun Industries.
Under the compulsory delisting regulations, the delisted company, whole-time directors, promoters and group firm would be debarred from accessing the securities market for 10 years from the date of compulsory delisting.
Promoters of these delisted companies will be required to purchase the shares for the public shareholders as per the fair value determined by the independent valuer appointed by BSE. Further, these companies will be moved to the dissemination board of the exchange for five years as advised by Sebi.
First Published: Mon, May 21 2018. 01 19 PM IST livemint
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