Sebi on Monday asked companies previously listed on the derecognised stock exchanges to either migrate to the national bourses by meeting their listing requirements or provide an exit opportunities to
Sebi on Monday asked companies previously listed on the derecognised stock exchanges to either migrate to the national bourses by meeting their listing requirements or provide an exit opportunities to shareholders within a prescribed time frame.
Sebi warned that any promoter or director of the company, which fails to comply with the regulatory requirement, would be barred from the securities market for a period of ten years.
The regulator has also proposed freezing of shares of the promoters and directors besides attachment of their bank accounts and other assets to compensate investors. Sebi also said those companies willing to list on the main exchanges would be allowed to raise fresh capital through preferential allotment to meet the listing criteria of national stock exchanges.
Earlier in 2012, Sebi issued guidelines providing exit to shareholders by allowing those companies to list on the national stock exchanges after complying with the diluted listing norms.
