Friday, 12 May 2017

LIST OF MADRAS STOCK EXCHANGE LISTED COMPANIES SHIFTED TO DISSEMINATION BOARD (I.E DASH BOARD)


The Madras Stock Exchange (i.e MSE), was the first ever stock exchange established in south of India, in Chennai. It was the fourth stock exchange established in India. MSE has a subsidiary company Madras Financial Services Limited (i.e MSEFSL) which was incorporated in year 2000. MSEFSL was established to provide trading opportunities to the trading members of RSE (i.e Regional Stock Exchanges), to trade in multiple exchanges. MSEFSL is a leading trading member of BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) and also a registred Depository participant (DP) with CDSL (Central Depository Services Ltd).

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. Since MSE i.e Madras Stock Exchange was not able to meet the SEBI standard for operating as exchange, it got shut down by SEBI in Year 2014.

Madras Stock exchange had many valuable and noteworthy companies with strong financial background and management control, such as, A.V.Thomas, BE BE Rubber Estate, Deccan Finance, L.J International, Lel Properties, Manjushree Plantation, Reed Relay & Electronics, Sree Akkamamba Textile, Ramaraju Surgical, Western India Plywood , MIL Industries, etc.

Many of these MSE 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.

List of Madras Stock Exchange (i.e MSE) Companies-LIST OF MADRAS STOCK EXCHANGE COMPANIES

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