Saturday, August 15, 2015

SEBI bans suspended Companies and Directors

A suspended company, its holding/subsidiary, its promoters and directors shall not issue prospectus
or advertisement soliciting money from public for issue of securities directly or indirectly till
suspension is revoked by concerned stock exchange or securities of such company are delisted, Securities and Exchange Board of India said in a circular. The strict conditions would be in place till the suspension is revoked or till these securities get delisted, whichever is earlier.In addition, SEBI said the suspended company and the depositories would not be allowed to transfer, by way of sale, pledge, of scrips of a suspended firm held by promoter entities and directors. In case the suspended entities remain listed, then such activities can be done only after three months from the date of revocation of suspension.

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