Companies on dissemination board or those listed on de-recognised bourses can seek listing on nationwide stock exchanges subject to certain conditions, according to Sebi.
The markets regulator has provided clarity on Exclusively Listed Companies (ELCs) on the dissemination board.
Firms listed exclusively on de-recognised or exiting regional stock exchanges which fail to get listed on any other such bourse have to be moved to the dissemination board.
In response to a joint representation made by the BSE and the NSE, Sebi said such exclusively listed firms can seek listing on nationwide bourses subject to certain conditions.
"In case an ELC expresses its willingness to get listed in a nationwide stock exchange other than the DSE, such listing may be allowed and the name of the ELC may be removed from the dissemination board upon listing of such ELCs on the nationwide stock exchanges," Sebi said in a recent circular.
The representation was made against the backdrop of the issues faced by ELCs.
Designated Stock Exchanges (DSEs) are referred to those bourses which host the ELCs.
Back in October 2016, Sebi had issued a circular pertaining to ELCs on the dissemination board.
In case the ELC has already started the process of providing 'exit' to the investors before October 10, 2016, DSEs may accede to such requests provided the stipulated procedures are followed, the regulator said.
Further, Sebi said that in case the ELC listed on any of the de-recognised bourses is also listed on Calcutta Stock Exchange, "such company may be removed from the dissemination board".
With regard to ELCs that are under winding up process and involved in court proceedings, the regulator said such entities can be kept on hold by the DSEs concerned till the court proceedings are complete.
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