Friday, 19 May 2017
LIST OF LUDHIANA EXCHANGE OF INDIA LISTED COMPANIES SHIFTED TO DISSEMINATION BOARD (I.E DASH BOARD)
The Ludhiana Stock Exchange (Currently known as Ludhiana Stock and Capital Limited) was established in Year 1981, in region of Punjab, Jammu and Chandigarh. Ludhiana Stock Exchange/ Ludhiana Stock and Capital was formed by Vardhman Group and Hero Group. Ludhiana Stock Exchange has a subsidiary i.e L.S.E Securities Limited. L.S.E Securities Limited was incorporated in Year 2000 to undertake trading and depository operations.
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 EXCHANGES)
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. On de-recognition of Ludhiana Stock Exchange Ltd, SEBI registration certificates as Trading Members of Exchange stand canceled. However, SEBI registration certificates of the Trading Members as Sub-Brokers of L.S.E. Securities Limited on NSE and/ or BSE shall continue to be valid. All the Investors of Sub-Brokers shall continue to trade through L.S.E. Securities Limited and avail DP Services without any interruption.
Ludhiana Exchange had many valuable and noteworthy companies with strong financial background and management control. Some of these Ludhiana 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.