New Delhi : In a bid to join the government’s move to clamp down on shell companies, the Bombay Stock Exchange (BSE) said it would delist 36 companies from next week as trading in their shares has remained suspended for over three years.
These companies will be delisted from March 5, BSE said in two separate circulars on Wednesday. They belong to various sectors ranging from textiles, chemicals, pharma and technology.
The move 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, Sebi had directed 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.
BSE said that 28 companies, that have suspended for more than 3 years and and are under liquidation, will be delisted.
Among the firms to be delisted are Mafatlal Dyes & Chemicals, Veronica Laboratories, Polar Pharma India, Shonkh Technologies International and Bellary Steels & Alloys.
Separately, the exchange said that another eight firms would be compulsorily delisted from the platform as they have remained suspended for more than 3 years.
These eight firms are Volplast, Ashoka Cotseeds, Vijaykumar Mills, Great Western Industries, Ashoka Cotseeds, Rupal Laminates, Enviro-Clean Systems and Gandhidham Spinning & Manufacturing.
Under the compulsory delisting regulations, the delisted company, its whole-time directors, promoters and group firm would be debarred from accessing the securities market for 10 years from the date of compulsory delisting.
