Promoters and Whole Time Directors in case of compulsory delisting

Where stock exchange makes compulsory delisting of equity shares of a Company under SEBI (Delisting of Equity Shares) Regulations, 2009 AND if the fair value to be paid to public shareholders is positive (which is determined by an Independent valuer appointed by Stock exchange), then such company and the depositories (both) shall not effect transfer, by way of sale, pledge, etc., of any of the equity shares of promoter/promoter group.

Further such company and depositories shall ensure that entitlement to corporate benefits to promoters and promoter group be frozen.

Both, not effecting transfer, pledge etc. and freezing of corporate benefits to promoter and promoter group shall by until the point of time the promoters of such company provide an exit option to the public shareholders.

Further, the promoters and whole-time directors of the compulsorily delisted company shall also not be eligible to become directors of any listed company till the exit option is provided.

SEBI Circular number SEBI/HO/CFD/DCR/CIR/P/2016/81 dated 07th September, 2016, which can be accessed from http://www.sebi.gov.in/cms/sebi_data/attachdocs/1473248605168.pdf

%d bloggers like this:

Disclaimer

 

Chamber of Prakash K. Pandya

Advocate, Mediator and Insolvency Professional

The Bar Council of India does not permit advertisement or solicitation by advocates in any form or manner. By accessing this website, http://www.pkpandya.com, you acknowledge and confirm that you are seeking information relating to/from Chamber of Prakash K. Pandya of your own accord and that there has been no form of solicitation, advertisement or inducement by Chamber of Prakash K. Pandya or its members and associates. The content of this website is for informational purposes only and should not be interpreted as soliciting or advertisement.

The visit to this website implies your willing consent, acceptance and agreement to our terms of services including our privacy policy and cookie policy.