BSE sends notice to 509 suspended firms

Bourse asks companies to either apply for revocation of suspension or opt for delisting With regulator Sebi planning removal of suspended companies from the capital markets, top bourse Bombay Stock Exchange (BSE) has already sent notices to 509 firms to either apply for revocation of suspension or opt for delisting. In all, trading in shares of as many as 1,021 companies listed on BSE has been under suspension for a period of seven 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. 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 the 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. A BSE spokesperson said “The exchange has 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.” 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.