In continuation of SEBI Circular dated October 10, 2016 the Capital Markets Regulator has given the RSE listed Exclusively Listed Companies (ELCs), their Promoters & Directors another lease of life by extending the last date for submission of Action Plan.
SEBI, vide its Circular dated January 5, 2017 has extended the date from January 10, 2017 to March 31, 2017. The decision has been taken in view of the representations received in this respect.
However, in our opinion, this should not be treated as a permanent exemption. This may be a last opportunity that has been given to the Promoters/ Directors of the Companies to opt for one of the alternatives i.e. either to get their ELCs Listed on Nationwide Stock Exchanges (BSE/NSE/MSEI) or to provide an exit opportunity to the existing public shareholders in the manner prescribed by SEBI Circular dated 10th October, 2016.
Further, companies that fail to avail either of the options, those companies, their Promoters, their Directors and any companies promoted by any of them shall be debarred from accessing capital markets for the period of 10 years. Their Shares will be frozen and their bank accounts/other assets to be attached.
In this connection, we are pleased to inform that our Merchant Banking arm- Corporate Professionals Capital Pvt. Ltd., a SEBI Registered (Cat-1) Merchant Banker has been empaneled with BSE and NSE as an Independent Valuer for valuation of ELCs on DB for providing Exit Opportunity to the Public Shareholders in terms of above mentioned SEBI Circular.