Leading stock exchange BSE will 'compulsorily' delist 200 firms this week and bar their promoters from the markets for 10 years as trading in these shares have remained suspended for over a decade.
All these companies will be delisted from August 23. The move also comes at a time when authorities are clamping down on shell companies -- listed as well as unlisted -- for allegedly being used as conduits for illicit fund flows.
Earlier this month, Sebi directed exchanges to act against 331 suspected shell companies, while the government has already deregistered more than 1.75 lakh firms that have not been carrying out business activities for long.
Among the firms to be delisted are Eupharma Laboratories, Athena Financial Services, Magnus Rubber Industries, Rajasthan Polyesters, Transpower Engineering, Dupont Sportswear, Dynavox Industries and GDR Media.
Majority of these companies have remained suspended for more than 10 years and are "under liquidation". 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.
Market losses mount, Infosys pulls down Sensex
Stocks yesterday made an early attempt to come out of the Infosys jolt, but ultimately could not as the Sensex lost 266 points and the Nifty cracked below 9,800 at the close amid a lower opening in Europe.
The IT sector as a whole faced the backlash of Vishal Sikka's surprise resignation as Infosys CEO. The software giant suffered more losses, down 5.37%, despite its Rs 13,000 crore share buyback announcement.
The 30-share Sensex ended 265.83 points lower, or 0.84%, at 31,258.85. The broader NSE Nifty closed down 83.05 points, or 0.84%, at 9,754.35.