BSE has issued caution notice to all the suspected shell companies, to take note of the process for dealing with suspected shell companies not having any operation for a long period. All Companies are given time of one year from the date of present notice to revive their operations within 1 year and until then trading in the securities of these companies shall continue to remain in Stage VI of GSM framework. During the period of 1 year, if company demonstrates revival of its operations, its security shall be moved out of Stage VI of GSM Framework, post announcement of minimum 2 quarterly financial results and appointment of Independent Auditor to conduct Forensic Audit covering the period of revival of operation. Further, if Companies fail to demonstrate revival of their operations within the stipulated one year period, then trading in the securities of such company shall be suspended, followed by initiation of compulsory delisting process in accordance with provisions of SEBI (Delisting of Equity Shares) Regulations, 2009 read with provisions of Securities Contracts (Regulation) Act, 1956 and Securities Contracts (Regulation) Rules, 1957.
No comments:
Post a Comment