SEBI plans major cleanup of Indian capital markets

SEBI plans major cleanup of Indian capital markets.

Sebi to delist 4,200 firms; warns erring promoters, auditors

SEBI chief UK Sinha said the regulator plans to force promoters of companies whose shares do not see active trading both at the main bourses and in regional exchanges to delist. Such promoters will have to provide an exit route to investors, failing which they will be penalised. India has about 8,000 listed companies but active trading hardly takes place beyond the top 1,000. As many as 1,200 companies have been suspended for trading for over seven years now, and these will be the first that will be forced to delist.

Read more at: https://www.moneycontrol.com/news/market-news/sebi-plans-major-cleanupindian-capital-markets-here39s-how_6744781.html

 

Good move to rid junk stocks from market.

 

yes those are good decisions no doubt .... last 30 years i was seeing new companies list their companies through public issues and they simply windup with in 2 -3 years and intentionally delist their companies just violating rules and they even not submitting quarterly results and annual reports to exchange and SEBI also time to time and finally Exchange fed up with these companies and delist from exchanges ....

Primary issues also SEBI will take hard decisions to filter fraud companies and high premiums
if any company willful delist with rules violations punishment also impose hardly on them

 

If any forum members are holding any of the "trading suspended" stocks, they can keep a watch on further news in this matter. Further News, Comments, Inputs on this topic from esteemed members expected.

 

Where is list of stocks?

 

SEBI also need to take some protection action for small investors
if 4200 companies delist with in a pen stroke ... what about small investors already invested in those companies
promoters feel very happy ...but small investors they can not sell their stocks in market
so SEBI should do buy back policy all stocks from public and then delist is correct ...fraud promoters will effect with this action ...promoter should buy back all stocks and then delist is correct or sell all properties of those companies and distribute money equally is another way

 

SEBI not finalized list ..... Brazil like countries also suspended so many companies .... if quality maintained public also not lose money ...i always said in my posts please always buy quality good stocks and below top 500 companies only

 

junk stocks are where retail investors lose their money and get scared of coming back to invest in capital market. junk stocks shud b delisted. this will encourage more retail participation which is good for them. good move but implementation shud be fast and proper.

 

before delisting promoter should buy back public share is the only solution to teach a lesson to fraud promoters

 

100% Agreed.

 

yes sir. but buyback will take time.

 

The Securities and Exchange Board of India ( Sebi) wants to slash the number of listed companies by more than 4,000, clamp down on algorithmic trading abuse and possibly allow investors to buy mutual funds from Amazon and Flipkart as part of an ambitious agenda for 2016-17.

Bulk of the companies Sebi chief UK Sinha wants to delist are on regional stock exchanges, where there's no trading. Sebi is also targeting about 1,200 companies listed on the BSE and NSE that have been suspended for more than seven years.

The stock exchanges will appoint a valuer who will determine a fair price for the shares, after which promoters and management will have to buy out investors. Those who don't comply will face harsh treatment such as being barred from raising money from the public and promoters and directors could also lose seats on other boards.

Excerpted from : https://economictimes.indiatimes.co...-get-your-money-back/articleshow/52432304.cms

The exercise for over 4,200 listed firms would be completed this year. Such exercises would be taken up going forward to clean up the market from what the Sebi chief described as "a source of nuisance".

Promoters would be asked to make exit offers for the shareholders of these companies, while those willing to resume normal trading on main exchanges would be allowed to do so after meeting regulatory requirements.

"If promoters do not give exit offer, we will take action against them. First, we will debar them from raising funds from the markets. There will be action against the company, the promoters and even directors," the Sebi chief said.

"They must clean up. If promoters do not cooperate, they will face the music. Sebi is a substantially empowered regulator and law allows us to take action against them," he said, adding that a fair value will be decided by a third party for the exit offer.

Mr Sinha further said that around 500 such listed companies have decided to come on the main exchanges.

"Besides, monitoring of compliance by intermediaries including brokers is also high on the agenda. There have been some cases where brokers have run away with money of the clients. While Sebi has taken action against them, it also needs to ensure that such incidents do not happen again," he added.

Excerpted from : https://profit.ndtv.com/news/market...firms-warns-erring-promoters-auditors-1410578

 

The stock exchanges will appoint a valuer who will determine a fair price for the shares, after which promoters and management will have to buy out investors. Those who don't comply will face harsh treatment such as being barred from raising money from the public and promoters and directors could also lose seats on other boards.

Excerpted from : https://economictimes.indiatimes.co...-get-your-money-back/articleshow/52432304.cms