BSE: Suspension Of Companies As A Surveillance Measure

Trading Members are aware that, in past, SEBI had passed several orders against the concerned parties/companies, inter alia, in relation to unusual price movements vis -a- vis preferential issue price and weak financials of the company.

While the Exchange, from time to time, has taken requisite steps to detect and contain such instances, it is felt necessary that further pre-emptive measures should be adopted to curtail misuse of the Exchange’s system.

Accordingly, various enhanced surveillance measures such as reduction in price band, suspension in the trading of securities, etc., will be adopted by the Exchange.

In furtherance of aforesaid course of action and as a preventive measure, trading in the securities of following companies shall be suspended / remain suspended with effect from Thursday, December 24, 2015:

Trading in the securities of these companies shall be suspended till such time the company submits the following –

An Auditor certificate, confirming each of the following and duly supported by the documents relied upon, with regard to the preferential issue(s) made by the company:

i)        Amount raised under each of the preferential issue

ii)      What was the object of raising the fund

iii)    How the preferential issue benefitted the company

iv)    There is no mis-utilization of funds raised under preferential basis. To be duly supported by bank statement of the company.

v)      Money raised as above has not been transferred back to the preferential allottees/ promoters/ directors directly or indirectly

In case of any discrepancies observed in the auditor certificate in future, same shall be viewed seriously including referring of the case to ICAI.