August 17, 2017

SEBI Freezes Promoters Shares of Errant ELC ( Exclusively Listed Companies )

SEBI ORDER DATED : 01/08/2017

Sub: Action against Exclusively Listed Companies and its Promoters/Directors pending Exit Offer to the Shareholders 

1. SEBI vide circular dated October 10, 2016, provided options to the Exclusively Listed Companies (“ELCs”) on Dissemination Board (“DB”) to raise capital for meeting the capital requirement for getting listed on the nationwide stock exchanges or to provide exit to investors. An exit mechanism for investors in such ELCs was also specified in the aforesaid circular. Further, ELCs were required to furnish the plan of action by January 09, 2017 to the Designated Stock Exchanges (DSEs), which was subsequently extended till June 30, 2017. 

Such ELCs and the Depositories shall not effect transfer, by way of sale, pledge, etc., of any of the equity shares and the corporate benefits such as dividend, rights, bonus shares, split, etc. shall be frozen, for all the equity shares, held by the promoters or directors of non-compliant Exclusively Listed Companies till the promoters of such non-compliant Exclusively Listed Companies provide an exit option to the public shareholders in compliance with SEBI circular dated October 1

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Ashwani Kumar Aggarwal said...

Do Not Punish Investors

Trading should not stop. ( 331 Companies to Trade only once a month -i.e. First Monday of each Month ).

This means punishing the hapless Investors who have no role in running the affairs of the Company.

SEBI / Govt, should first solve the issue of Non Trading of Shares which were earlier Exclusively Listed in , now closed , Regional Stock Exchanges.

Then there is issue of Metropolitan Stock Exchange.

Many small cap gems like Frick India are listed exclusively in Metropolitan Stock Exchange. No share trading is taking place in Metropolitan Stock Exchange causing immense problem to the Investors.

SEBI must ensure regular trading in Metropolitan Stock Exchange and help small Investors.

Ashwani Kumar Aggarwal said...

We are thankful to SEBI for helping investors of original Exclusively Listed Companies which were earlier listed in , now , closed Regional Stock Exchanges.

Around 190 such Exclusively Listed Companies are , now , Exclusively Listed in Metropolitan Stock Exchange , Mumbai

( Examples Frick India, Dalmia Refractories, John Oakey and Mohan )

This is creating great difficulty to small investors regarding liquidity.

Please direct Metropolitan Stock Exchange to commence trading in shares.

Ashwani Kumar Aggarwal said...

Calcutta Stock Exchange - SEBI Should Declare it Defunct
PNB Finance and Camac Commercial are Listed in CSE.

But there is no trading in these shares.

Promoters should not take the plea that shares are Listed.

Public Shareholders' interests are supreme, always.

Phani Kumar said...

This Information is really good and informative. Thanks for it.
Check below links and get useful information.
Likhitha Infrastructure Ltd IPO