Promoters of compulsorily delisted companies will not be allowed to sell their shares or take dividends till they provide an exit option to the public shareholders, Sebi said today.
Putting in place stricter norms, the market regulator said it is being done to ensure effective enforcement of exit option to the public shareholders in case of compulsory delisting.
A recognised stock exchange has powers to compulsorily delist shares of a listed company on certain grounds.
In a circular, Sebi said compulsorily delisted firms, that have a positive fair value, should not effect transfer of shares owned by its promoters.
Besides, the promoters’ corporate benefits including dividend and bonus would be frozen till they provide an exit option to the public shareholders.
“… such a company and the depositories shall not effect transfer, by way of sale, pledge, etc. of any of the equity shares and corporate benefits like dividend, rights, bonus shares, split, etc. shall be frozen, for all the equity shares, held by the promoters/ promoter group till the promoters of such company provide an exit option to the public shareholders,” the circular said.
This would be applicable to those companies having a positive fair value.
According to the watchdog, promoters and whole-time directors of the compulsorily delisted company would also not be eligible to become directors of any listed firm till they provide exit option.
Currently, a compulsorily delisted company’s whole-time directors, promoters and the firms promoted by them are barred from the securities markets for ten years.
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