 "BSE sends notice to 509 firms to apply for revocation of suspension or opt for delisiting")
In all, trading in shares of as many as 1,021 companies listed on BSE has been under suspension for a period of 7 years or more as on June 1 this year.
The exchange, which is considering compulsory delisting of these companies from its platform in a phased manner, has sent out communications to 509 firms advising them to initiate the process of revocation of suspension.
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While follow up letters have also been sent out in this regard, 52 companies have sought revocation of suspension in trading of shares and one company has sought delisting, in response to the exchange's communication.
Besides, show cause notices have been issued to the firms which have not responded to the exchange's letters.
BSE's efforts on the issue assume significance following recent statement by Sebi chairman U K Sinha on the regulator's plans to push for delisting of over 4,200 listed companies on nation's capital markets whose shares are not being traded.
With 5,840 firms trading on its platform, BSE is the world's largest bourse in terms of number of listed entities.
"BSE is considering these companies for compulsory delisting in a phased manner. In first phase, letters have sent out to 509 companies advising them to initiate the process of revocation of suspension," the BSE spokesperson told PTI.
"The exchange has subsequently issued a show cause notice to the firms which have not responded to the earlier letters, advising about the provisions of Sebi delisting norms and what the process of compulsory delisting would entail," he added.
Earlier this year, BSE had initiated a procedure to help firms, suspended on account of non-compliance with listing norms, meet the necessary regulatory requirements speedily.
Under the procedure, BSE-listed firms are required to meet with the compliances to revoke their suspension, within a prescribed time limit, and failure to complete the process would result in compulsory delisting of such companies from the stock exchange.
said: "It seems that some of the companies have changed their registered office addresses without intimating the same to the Exchange/ Ministry of Corporate Affairs."
"On account of the same, some communications have been returned undelivered," he added.
Accordingly, BSE would issue a public notice giving the names and details of the companies sought to be delisted and giving any person including the company who are aggrieved by the proposed delisting, a time of 15 working days to make a suitable representation in this regard.
Meanwhile, BSE has also empanelled independent valuers to compute the fair value of companies that are to be delisted.
There are estimated to be over 1,200 companies whose shares are listed on national bourses BSE and NSE but where trading has been suspended for various non-compliance issues for over seven years.
Besides, there are over 3,000 companies listed on various regional stock exchanges that have become defunct.
According to Sebi whole time member Rajeev Kumar Agarwal, the regulator is working on guidelines to remove companies which have been suspended for many years.
"We have to take measures first to ensure investors are protected," he had said.