The Securities and Exchange Board of India (SEBI) has initiated action against non-compliant “Exclusively Listed Companies (ELCs) on Dissemination Board (DB),” and its directors and promoters.
These are companies which were earlier listed on regional stock exchanges (RSEs) that have been de-recognised by the regulator. Such companies were allowed to be part of the national exchanges through a dissemination board but were directed to submit a plan of action for listing or providing an exit option to shareholders.
SEBI can bar such promoters and companies from accessing the securities market for a period of 10 years apart from freezing the shares held by promoters and directors. The regulator can even attach the bank accounts and other assets of promoters and directors to compensate the investors.
536 traceable firms
The deadline to submit the plan of action was extended until June 30. As per SEBI, of the 2,000 companies listed on dissemination board as on June 30, there are 536 entities that are traceable and yet not submitted a plan of action.
“Out of 536 ELCs, there are few ELCs which have made representation to SEBI/Stock Exchanges and their representations are under examination. SEBI has extended the time to submit plan of action by such ELCs till September 30, 2017,” according to a statement from SEBI.