June 26, 2012

Jalandhar Investors Thrilled at Listing of Delisted Shares

Defunct Exchange Listed Shares-SEBI Directive For Listing on Recognised Exchanges

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1338376477669.pdf

Dissemination Board ( For  Buyer / Seller Details with Brokers of BSE / NSE ) - Provision Made

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I may have missed the discussion on this....but this a very important development for all shareholders of companies that are listed on defunct regional stock exchanges.


Tandav

New SEBI rules for exclusively listed firms

13 June 2012, Mumbai, Team MP

Asks members of non-operational exchanges to allow better valuation of shareholders’ assets.

The Securities and Exchange Board of India (SEBI) vide a circular dated 30 May 2012 has issued an exit policy for de-recognised/non-operational stock exchanges. As per the circular, the exchanges may seek exit through voluntary surrender of recognition. SEBI has directed the exclusively listed companies on these exchanges to follow the process to give exit option to their shareholders. These companies shall list on any other recognised stock exchange.

SEBI has also directed the recognised stock exchange to carry out changes to their listing eligibility criteria in the interest of investors, so that exclusively listed companies can be listed on recognised stock exchange. In this regard the stock exchanges shall issue the differential listing eligibility criteria for such companies.

There are several companies - like Jullundur Motor Limited, Raunaq International Limited, The Ramaraju Surgical Cotton Mills Limited and Bharat Nidhi Limited, which are exclusively listed on de-recognised/non-operational stock exchanges having great intrinsic value and big net assets values with lot of business potential, but because of non-operational nature of stock exchanges, shareholders of these companies do not get an exit option. These shareholders also do not get the true and fair value of their investments, as the shares of these companies are not traded and true price identification is not possible. The circular bring cheers to these shareholders.

Providing the listing platform for these exclusively listed companies, SEBI has protected the interest of shareholders and has also created a transparent and fair share pricing mechanism of their investments. It also provides the true and timely information about the financials of these companies and any other corporate information which is required to be published by any listed company.

source: http://millenniumpost.in/NewsContent.aspx?NID=3918

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great news . shareholders of such companies should send letters , emails to such companies to proceed with listing on operational stock exchanges like NSE , BSE

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