Securities and Exchange
Board of India (SEBI) vide circular no. CIR/ MRD/ DSA/ 14/ 2012 dated May 30, 2012 has provided an exit option to the de-recognized
stock exchanges and recognized stock exchanges seeking voluntary surrender of
recognition ("exiting RSEs").
Companies listed exclusively on exiting or de-recognized RSEs were shifted on Dessimination Board of BSE/NSE till the time frame promoters of these companies decided upon either:
Companies listed exclusively on exiting or de-recognized RSEs were shifted on Dessimination Board of BSE/NSE till the time frame promoters of these companies decided upon either:
- Permit Exclusively Listed Companies (ELCs) to raise capital to meet listing criteria of Nationwide stock Exchanges
- Course of action to be followed by ELCs to give exit options to its public shareholders since these companies have not taken adequate steps to get listed on nationwide stock Exchanges and continue to be placed on Dissemination Board.
As per the SEBI Vide Circular SEBI/HO/MRD/DSA/CIR/P/2016/110 dated 10th Oct ,
2016 all the dissemination board companies has to
file their decision with the respective board by 30th June , 2017.The companies who have or had decided upon
providing exit offer to their shareholders has to undertake valuation of the
company through appointment of “Independent Valuer” based on the
requirement of SEBI circular dated Oct, 2016.
Click: BSE LIST OF INDEPENDENT VALUERS | NSE LIST OF INDEPENDED VALUERS | LIST OF COMPANIES OPTED FOR EXIT
ROUTE – BSE | LIST OF COMPANIES OPTED FOR EXIT
ROUTE – NSE |
A. ELIGIBILITY OF INDEPENDENT VALUER :
- Is a valuer member of a registered valuers organisation
- Is recommended by the registered valuers organisation of which he is a valuer member for registration as a valuer
- Has passed the valuation examination under rule 5 within three years preceding the date of making an application for registration under rule 6
- Possesses the qualifications and experience as specified in rule 4
- Is not a minor
- Has not been declared to be of unsound mind
- Is not an undischarged bankrupt, or has not applied to be adjudicated as a bankrupt
- Is a person resident in India; Explanation.─ For the purposes of these rules ‘person resident in India’ shall have the same meaning as defined in clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999) as far as it is applicable to an individual
- Has not been convicted by any competent court for an offence punishable with imprisonment for a
- has not been levied a penalty under section 271J of Income-tax Act, 1961 (43 of 1961) and time limit for filing appeal before Commissioner of Income-tax (Appeals) or Income-tax Appellate Tribunal, as the case may be has expired, or such penalty has been confirmed by Income-tax Appellate Tribunal, and five years have not elapsed after levy of such penalty
- Is a fit and proper person- (i) integrity, reputation and character, (ii) absence of convictions and restraint orders, and (iii) competence and financial solvency.
B.
METHODOLOGY
FOR CONDUCTING VALUATION :
The registered
valuer shall, while conducting a valuation, comply with the valuation standards
as notified or modified under rule 18: Provided that until the valuation
standards are notified or modified by the Central Government, a valuer shall
make valuations as per-
- Internationally accepted valuation standards;
- Valuation standards adopted by any registered valuers organisation.
The registered valuer may obtain inputs for
his valuation report or get a separate valuation for an asset class conducted
from another registered valuer, in which case he shall fully disclose the
details of the inputs and the particulars etc. of the other registered valuer
in his report and the liabilities against the resultant valuation, irrespective
of the nature of inputs or valuation by the other registered valuer, shall
remain of the first mentioned registered valuer.
The valuer shall, in his report, state the following:
- Background information of the asset being valued
- Purpose of valuation and appointing authority
- Identity of the valuer and any other experts involved in the valuation; (d) disclosure of valuer interest or conflict, if any
- Date of appointment, valuation date and date of report
- Inspections and/or investigations undertaken
- Nature and sources of the information used or relied upon
- Procedures adopted in carrying out the valuation and valuation standards followed
- Restrictions on use of the report, if any
- Major factors that were taken into account during the valuation
- Conclusion
- Caveats, limitations and disclaimers to the extent they explain or elucidate the limitations faced by valuer, which shall not be for the purpose of limiting his responsibility for the valuation report.
The above measures are taken by SEBI are to protect the
rights of minority shareholders and provide them liquidity opportunity for
their investment. So it is the right and responsibility of each and every
shareholders to make sure that the valuation and valuer appointed by their
respective invested companies should follow all the rules specified above.
If
as a shareholder we find some dissatisfaction on the exit offer been given by
the company one can command over to view the valuation report and question on
the methodology used to the company and valuer appointed,
eg. : In case of NBFC – Investment a valuer should have taken into
consideration Investment value of quoted and un-quoted investment and fixed
assets of the company been valued to arrive at a fair valuation to be offered
under exit option.
If
the shareholders fail to get a valid and satisfying answer for their query
raised against the valuation report from the company and valuer they have right
to address it to SEBI under Scores – Complaint
Registration.
For latest update on stock market and
unlisted shares and securities subscribe to our blog:
http://www.rareindianshare.info/
http://www.rareindianshare.info/
Or
For buying and selling any unlisted
shares in physical or Demat mode you can contact us on +91 9215709100 or Email
us your requirements on mittalmanish2003@gmail.com
Read More: LIST OF COMPANIES -
UPSE
STOCK EXCHANGE | PUNE
& MP STOCK EXCHANGE | OTC
EXCHANGE | MADRAS
EXCHANGE | LUDHIANA
EXCHANGE | DELHI
STOCK EXCHANGE | BANGALORE
STOCK EXCHANGE | AHEMDABAD
STOCK EXCHANGE|
Excellent post. I really enjoy reading and also appreciate your work. This concept is a good way to enhance knowledge. Keep sharing this kind of articles, Stock Investment Tracker for Investor Thank you.
ReplyDelete