Contact Us
022-26780807

SEBI vide its Circular dt. 07.09.2016 imposed Restrictions on Promoters & Whole-Time Directors of Compulsory Delisted Companies:

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

Leave a comment

Your email address will not be published. Required fields are marked *