Sebi Cracks Down on Non-compliant Companies on Defunct Bourses
By Team Legistify / 2017-07-09

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To safeguard investors of firms listed on non-operational bourses, Sebi on Friday decided to initiate action against companies that failed to submit an action plan to list on bourses or to provide exit option to shareholders.

Exclusively listed companies (ELCs) on the dissemination board were required to submit their action plans to either list on nation-wide bourses or provide exit option to shareholders by June 30, 2017.

The regulator had, in October 2016, provided three months time to ELCs to submit an action plan to list on bourses or to provide exit option to shareholder. In January this year, it had asked such companies to submit the action plan till March.

ELCs are entities listed on nonoperational exchanges and are currently on dissemination board of functional bourses where they are not traded.

Now, Sebi has decided to initiate action against the non -compliant ‘ELCs on Dissemination Board (DB)’, and its directors/ promoters, the regulator said in a statement.

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