Corporate Professionals Blog

The Capital Market Regulator, SEBI with the intent to refurbish the regime of Indian Capital Market has decided to proceed with the compulsory de-recognition and exit of those Stock Exchanges that have not achieved the minimum turnover of Rs.1,000 crore (as directed by SEBI vide its Circular dated 30 th May, 2012) at the end of the stipulated period, i.e. by 30 th May,2014. Ms. Anjali Aggarwal Vice President +919971673336 anjali@indiacp.com Accordingly, to redress the concerns of how to deal with the Companies exclusively listed on non-operational stock exchanges and with the primary intent to safeguard the interest of the public shareholders, SEBI vide its circular dated 22 nd May, 2014 have given following options to such listed entities:

With a view to enhance transparency, ensure adequate audit trail and to plug the entities misusing the private placement route to garner funds, the Capital Market Regulator, SEBI vide its notification dated 26th August, 2013, has made certain amendments in the Chapter VII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. SEBI’s initiative is surely a welcoming step that aims at aligning private placement norms applicable on listed companies with the new Companies Bill on one hand and to cork regulatory loopholes and protect investors’ interest on the other.