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”).
Lot of Regional Stock exchanges like Delhi Stock Exchange, Ahmedabad Stock Exchange, Lucknow Stock Exchange got de-recognized after then due to non- compliance of SEBI relevant regulations and the companies whose securities were listed on these de-recognized stock exchanges were placed on either of dissemination board of NSE and BSE.
Further SEBI vide Circular SEBI/HO/MRD/DSA/CIR/P/2016/110, provided an option to the Companies (Exclusively Listed Companies) placed on Dissemination Board of either NSE or BSE to get either listed on Recognized stock exchange or to provide an exit offer to their public shareholders.
The companies which have opted for providing exit opportunity to its public shareholders shall have to arrange the following documents and follow the required process mentioned herein below:-
What will happen if you continue to be on Dissemination Board?
In case any of the company has failed to comply with the SEBI circular dated October 10, 2016 or in other words has failed to raise capital for meeting the capital requirement for getting listed on the nationwide stock exchanges or to provide exit to investors, the promoters and directors of such companies shall be liable for the following actions: