In order to formalize the circular issued by SEBI (SEBI/HO/MRD/DSA/CIR/P/2016/110 dated October 10, 2016) providing exclusively listed companies (“ELCs”) on the dissemination board (DB) an extended time line of 3 months to exercise one of the two options – either to get listed on nationwide stock exchanges or to provide an exit to their public shareholders, BSE has come up with the format of application for exercising the option.
This Action plan is to be given by either the MD/WTD/CS of ELCs, for getting the equity shares of ELCs listed on the existing nationwide stock exchanges or to provide the exit option to public shareholders.
CP Comments:
In our view, with the issuance of this format, there is a clarity for the promoters and management of the ELC’s on how to intimate their intention and plan of action to Designated Stock Exchange in compliance of the SEBI Circular dated October 10, 2016. To remind all the Promoters/ managements of ELCs, this Action Plan is needed to be submitted to the DBs by 9th January 2017.
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 is empaneled with both 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.