Thursday, 11 May 2017
LIST OF BANGALORE STOCK EXCHANGE LISTED COMPANIES SHIFTED TO DISSEMINATION BOARD (I.E DASH BOARD)
The Bangalore Stock Exchange (Currently known as Bangalore Properties and Securities Limited) was established at Bangalore in Year 1963. BgSE was the first exchange in South of India to start electronic trading. Some of the well-known A- group companies such as Infosys, Wipro, United Breweries, Bharat Electronic,etc were traded online. As per the SEBI exit order in Dec 2014, BgSE by passing special resolution in 2015 changed its name to “BgSE Properties and Securities Limited”. Under new name BgSE shall undertake business of land and building mortgages, leasing, maintenance, construction and sell and purchase.
With SEBI (I.E Securities and Exchange Board of India) circular No. CIR/ MRD/ DSA/ 14/ 2012 dated 30th May, 2012 all the regional stock exchanges was closed down. All the Regional Stock Exchanges were provided an exit option to the de-recognised stock exchanges and recognised stock exchanges seeking voluntary surrender of recognition ("exiting RSEs") as per the SEBI order. Companies listed exclusively on exiting or de-recognised RSEs will be required to seek listing on atleast any other RSE that is not seeking de-recognition and exit in terms of the aforesaid SEBI Circular. As per the aforesaid SEBI Circular, companies failing to list on any other RSE, such companies will be treated as an unlisted company and shall be moved to Dissemination Board (DB) by such exiting or de-recognised RSE.
(Read full order of SEBI -SEBI ORDER ON REGIONAL EXCHANGE)
SEBI has directed all exchanges that do not possess a trading platform with an annual turnover of at least ₹1,000 crore and a net worth of ₹100 crore, and that do not have a tie-up with a clearing corporation, to exit. With de-recognition of the erstwhile Bangalore Stock Exchange Limited, the Company has stopped all stock exchange related activities with effect from December 26, 2014.
BgSE had many valuable and noteworthy companies with strong financial background and management control, such as, Bhavani Tea & Produces, Davanagere Sugar Company, East West Hotel, Mysore Paints & Varnishes, etc.
Many of these BgSE listed companies got listed on national wide stock exchanges i.e BSE(Bombay Stock Exchange), NSE(National Stock Exchange), Metropolitan Stock Exchange or Kolkata Stock Exchange. Many companies have also come out with buy back offer for their shareholders to provide them liquidity option.
ADVANTAGES TO SHAREHOLDERS: De-recognized/ regional/ dash board companies are more beneficial source of investment since these companies have to be compulsorily come out with either buy back ie exit offer for investors or list themselves on recognized national level exchanges. Thus Investors have a good opportunities to be the part of valuable stock on such exchanges and get a short term exit route. SEBI has been receiving representations seeking clarifications on raising of further capital and the process of exit of ELCs from the DB. Therefore, in the interest of the investors of such ELCs, it is decided to extend the time to submit the plan of action till June 30, 2017.