TMI BlogSEBI (Prohibition on Raising Further Capital From Public and Transfer of Securities of Suspended Companies) Order, 2015.X X X X Extracts X X X X X X X X Extracts X X X X ..... of Suspended Companies) Order, 2015. Under section 11A read with section 11 of the Securities and Exchange Board of India Act 1992. ___________________________________________________________________ 1. In terms of section 21 of the Securities Contracts (Regulation) Act, 1956 read with section 11A of the Securities and Exchange Board of India, Act ( SEBI Act ), all listed companies ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trading in their shares is suspended by the concerned recognised stock exchange. While the non-promoter shareholders of such companies remain in disadvantageous position on account of information asymmetry, their promoters/directors, who are responsible for such defaults, can use the undisclosed information about the company and dispose of their shareholding in the company leaving the gullible in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue of securities, directly or indirectly; till the suspension is revoked by the concerned recognised stock exchange or securities of such company are delisted in accordance with the applicable delisting requirements, whichever is earlier: Provided that SEBI may, in the interest of trade and securities market, relax the strict enforcement of this restriction on recommendation of the concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asons shown by such promoter/director, remove this restriction in accordance with its applicable rule, regulations and bye-laws. 4. For the aforesaid purposes, suspended company means a listed company in whose shares trading is suspended from trading by the recognised stock exchange on account of non compliance with listing requirements. 5. This Order shall come into force with immediate e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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