The Bombay Stock Exchange will compulsorily delist 200 firms on Wednesday, and bar their promoters from the market for 10 years, PTI reported. The BSE said that of the 200 firms, 117 have remained suspended from the stock market for 10 years, and hence will be delisted.
Twenty eight other companies are under liquidation proceedings and will also be delisted. The remaining 55 firms will be delisted “pursuant to the order of the Delisting Committee of the Exchange”, the BSE said.
Among the delisted companies are Eupharma Laboratories, Athena Financial Services, Magnus Rubber Industries, Rajasthan Polyesters, Transpower Engineering, Dupont Sportswear, Dynavox Industries and GDR Media.
“Promoters of these delisted companies will be required to purchase their shares from the public as per the fair value determined by the independent valuer appointed by the exchange,” the BSE said in another notification. “Further, the delisted company, its whole-time directors, promoters and group companies shall be debarred from accessing the securities market for a period of 10 years from the date of compulsory delisting.”
The BSE’s move comes on the heels of a Securities and Exchange Board of India directive to the stock exchange to act against 331 suspected shell companies.