NSE issues show-cause notice to UB Holdings, 15 others for delisting of shares
Leading stock exchange NSE has issued a show-cause notice to defaulter businessman Vijay Mallya-led UB (Holdings) for delisting of its shares as trading has been suspended for a long time due to regulatory non-compliance.
Similar notice was issued to 15 other companies, including NEPC India, Net 4 India, Orbit Corp, REI Six Ten Retail, Shree Ganesh Jewellery House and REI Agro.Trading has been suspended in shares of some of these companies due to liquidation, while the suspension has been due to non-compliance to listing regulations for others.
Upon the proposed compulsory delisting by the NSE, for which the concerned companies can approach the exchange by June 12, these firms would cease to be listed and all their directors, promoters and group companies would be barred from accessing the securities markets for ten years.
The onus of giving exit to the public shareholders in these companies would be on the promoters, failing which they would face penal action, the NSE said in a public notice.
Separately, the BSE and NSE also added have added Amtek Auto to its list of companies whose shares would face additional surveillance measures.
The list of companies facing additional surveillance mechanism already include Austral Coke, Bombay Rayon Fashions, Electrosteel Steels, Gitanjali Gems, GTL Infra, Vakrangee Ltd, Jaypee Infratech, Stampede Capital, Talwalkars Better Value Fitness, Indiabulls Ventures and Usher Agro.
The additional surveillance measures (ASM) require 100 per cent margin and a price band of 5 per cent or lower for trading in these shares.