NSE has decided to delist some 18 companies from its platform with effect from May 30. And the list includes stocks such as Kingfisher Airlines, Plethico, Agro Dutch Industries, Broadcast Initiatives, Crest Animation Studios, KDL Biotech, Kemrock Industries and Exports, Lumax Automotive Systems, Nissan Copper, Shri Aster Silicates and Surya Pharmaceuticals.
The move is taken close on the heels of BSE delisting over 200 companies from May 11 as trading in them remained suspended for more than 6 months.
The step by the leading Indian bourse has been taken at a time when government is aggressively clamping down on shell companies, both listed and unlisted. It is to be noted that government de-registered more than 2,00,000 firms that were not carrying business operations for long.
In the circular, the NSE said, "it has decided to delist (withdraw the admission to dealings in) the equity shares of companies with effect from May 30, 2018 which have been compulsorily delisted by BSE Ltd.".
Additionally, the exchange said, that some seven 7 will get delisted from its platform due to their liquidation process that will be carried out on the same day i.e. May 30, 2018. The companies included in the list are - Brandhouse Retails, Elder Pharmaceuticals, First Leasing Company India, Glodyne Technoserve, Helios and Matheson Information Technology, Tulip Telecom and Varun Industries.
As part of the compulsorily delisting procedure and regulations, the delisted company, its promoters, whole-time directors and group firm would not be allowed to access the securities markets for 10 continuous years from the date of compulsory delisting. Also, promoters of these companies will have to buy out shares from the public shareholders at a fair price arrived at by the BSE appointed independent valuer.
In addition, the companies facing compulsorily delisting will be moved to the dissemination board of the exchange as per the directive of the market watchdog SEBI for 5 years time.