Leading stock exchanges BSE and NSE have initiated the delisting process for companies that have been under suspension for a very long time, Parliament was informed today.
As on date, trading in equity shares of 1,021 companies on the BSE and 132 firms on the NSE have been suspended for more than seven years, Minister of State for Finance, Arjun Ram Meghwal said in a written reply to the Rajya Sabha.
"The exchanges have initiated the process of delisting those companies which have been under suspension for a very long time and have not complied with listing requirements," he added.
Under the norms, stock exchanges can compulsorily delist the equity shares of listed company in case trading in the firm remains suspended for more than six months.
In August, BSE (formerly known as Bombay Stock Exchange) delisted 194 companies, while National Stock Exchange (NSE) announced delisting of 48 firms during August-November.
According to Sebi rules, promoters of the compulsorily delisted company would have to acquire shares from the public shareholders by paying them the fair value determined by the independent valuer, subject to their option of retaining their shares.
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