BSE to 'compulsorily' delist 200 companies, bar promoters for 10 years
The move comes at a time when the government has taken a tough stand against shell firms which facilitate tax evasion
At a time when the market regulator Securities and Exchange Board of India (Sebi)is cracking down on shell companies, BSE has decided to 'compulsorily' delist 200 firms from the stock exchange, reported PTI.
It will also bar the promoters of these companies from accessing the markets for 10 years. Trading in the shares of these companies have remained suspended for 10 years.
These firms will be "delisted from the platform of the exchange, with effect from August 23, 2017 pursuant to order of the delisting committee of the exchange in terms of Sebi (Delisting of Equity Shares) Regulations", BSE said in three separate circulars, PTI said.
The government, in July, had ordered closure of 200,000 shell firms and action against more is expected to be taken soon.
Prime Minister Modi in his independence day speech had said that those who have looted the wealth of the nation will not be spared.
Post demonetisation, authorities have seen a significant spurt in shell companies depositing cash, Reuters said in a report.
The crack down on these shell firms will significantly curb tax evasion and increase compliance.
(With inputs from agencies)