SEBI vide Circular no. SEBI/HO/CFD/DCR/CIR/P/2016/81 dt. 07.09.2016 imposed following Restrictions on Promoters, Whole-Time Directors of Compulsorily Delisted Companies to ensure effective enforcement of exit option to the public shareholders:
- They shall not directly or indirectly access the securities markets for a period of 10 years from the date of compulsory delisting.
- Promoter shall acquire delisted equity shares from the public shareholders, subject to their option of retention, by paying fair value as determined by the independent valuer.
- Company and depositories shall not effect transfer of the equity shares by any way and corporate benefits shall be frozen, for all the equity shares, held by the promoters/ promoter group till they provide an exit option to the public shareholders.
- Also, they shall not be eligible to become directors of any listed company till the said exit option is provided.
For detailed information, Pls. refer Circular available at the following link: sebi-circular_07-09-2016-promoters-restriction