No more trading in these 9 penny stocks, as BSE will delist them; did you invest in any? When, why, what next, all details here
The reason behind delisting these companies is because they have been suspended for a long period of time.
The Bombay Stock Exchange (BSE) has decided to remove companies that have been inactive for quite a long time, and taking this move ahead, the exchange will now delist some 9 companies from Monday onward. The reason behind delisting these companies is because they have been suspended for a long period of time. Most of them are penny stocks, and considering many investors do prefer small valuation shares, they might want to have a look at these companies if they have invested in any.
BSE in a circular issued on Friday stated that, nine companies that have remained suspended for more than six months would be delisted from the platform of the exchange, with effect from November 5, 2018 pursuant to order of the delisting committee of the exchange.
These companies are - Lok Housing & Construction Ltd, Pithampur Steels Ltd, Metropoli Overseas, Prakash Solvent Extractions Ltd, Brakes Auto (India) Ltd, SIBAR SOF SR, IQ Infotech Ltd, Indus Fila and Anil Products Ltd.
The companies mentioned have not recorded any sort of buying or selling for quite some time due to penal reason.
The Anil Ltd has stopped trading at Rs 28.90 per piece, while Indus Fila at Rs 1.27, IQ Infotech Ltd at Rs 2.06, SIBAR at Rs 0.61, Brakes Auto (India) at Rs 0.93, Pithampur Steels Ltd at Rs 0.82 and Lok Housing at Rs 4.11.
Prakash Solvent and Metropoli are listed without any price.
As per the BSE, these companies shares would be ceased and therefore, will not available for trading on the platform henceforth.
Not only this, th whole-time directors, promoters and group firms of these delisted companies will see the fate of being debarred from accessing the securities market for a period of 10 years.
However, the promoters of these companies will be needed to buy the shares from public shareholders as the fair value which is determined by the independent valuer and obtained by BSE.
During the month of August, BSE delisted about 17 firms, followed by a virtual massacre of 222 firms being delisted in July and 200 in the month of May this year.