The suspension of the scrip/stock/sharesmeans that an exchange has temporarily stopped trading in a particular stock or other security. The suspension can be due serious concerns about a company’s assets, operations, or other financial information.The exchange can also suspend trading in the stock of a company if it suspects of misleading or illegal activity.Once a security issuspended, shares cannot trade until the suspension is lifted or lapses.
Such suspension can be revoked or trading in securities can be restored on the compliance of the following:
|1||Compliance wrt capital issued and listed.||No difference between issued and listed capital. ( If such a difference exists then the listing formalities for the said capital should be completed and listing approval obtained prior to submission of revocation application).|
|2||Number of Quarters for which compliance would be verified||Four quarters|
|3||Other points to be verified||No outstanding Exchange dues No pending Investor Complaints No complaints pending in SCORES • No SEBI order debarring company or promoters No Adverse comment on the website watchoutinvestors.com for matters pertaining primarily to securities market and revocation of suspension. should not be a vanishing company as per data available on the MCA website|
|4||Signing with the depositories||Company should have signed with at least one depository. Provided that where the company has not signed with either/ both the depositories, it shall submit a letter from the relevant depository rejecting admission of the security in the depository|
|5||Payment of Fees||Payment of applicable revocation fees of the Exchange as under. • Revocation processing fees :Rs. 25000/- plus applicable service tax. (to be submitted alongwith application seeking in principle approval for revocation and valid for a period of one year) • Revocation reinstatement fees plus applicable service tax, payable after receipt of in principle approval for revocation and prior to approval for resumption of trading. (PLEASE REFER NOTES)|
|6||Information Memorandum||Information Memorandum as provided in Schedule II of Companies Act, 1956 to the extent applicable, as certified by the Company Secretary/ MD of the Company to be submitted for dissemination on the Exchange website at the time of revocation|
|7||Additional requirement for companies already suspended prior to implementation of SOP||In terms of SEBI circular of 30-Sep-2013, the Exchange shall, 7 days prior to revocation of suspension of trading in shares of the company, issue a notice informing the market participants about the proposed revocation • After revocation of suspension, the trading of shares shall be permitted only on 'Trade for Trade' basis (in "T" group )for a period of three months from the date of revocation and after this period of three months, trading in the shares of the company shall be shifted back to the normal trading category (after verification of the criteria of % of public and promoter holding in demat mode), after giving prior notice of 7 days|
Checklist for Revocation of Suspension
Note 1 : The Method of Calculation of Reinstatement Fee (Effective From September 27, 2017):
|Company suspended for < 5 years||Company suspended for 5 years or more||WordPress|
|Annual Listing Fees (highest payable during the period) * number of years of suspension subject to maximum cap of Rs.15 lakhs plus applicable tax||Annual Listing Fees (highest payable during the period)* number of years of suspension subject to maximum cap of Rs. 30 lakhs plus applicable tax|
For the companies in respect of which reference has been made to or which under the BIFR reference, a relief is granted to the extent of 50% of the reinstatement fees for the period starting from the date of reference to the BIFR till the date the company has come out of BIFR reference.
For the companies which are in the process of voluntary winding up or compulsorily winding up and the Exchange has suspended trading based on court order, if such companies do not want to go for winding up but want to go for activation/ revocation after complying with filings under Listing Agreement, the maximum cap of reinstatement fees would be Rs. 5 lakhs plus taxes.
|As per Old Listing Agreement till 30th Nov, 2015||As per SEBI Listing Regulation wef 1st Dec, 2015|
|Clause 31a - Annual Report||Regulation 34 - Annual Report|
|Clause 35 - Shareholding Pattern||Regulation 31 - Shareholding Pattern|
|Clause 41 - Quarterly Results \Annual Result||Regulation 33 - Quarterly Results \Annual Result|
|Clause 47 - Comp. Certificate, Appt, of Comp. Officer, RTA & Common Agency||Regulation 6 - Appointment of Compliance Officer . Regulation 7 – share Transfer Agent Regulation 7 (3) – Compliance Certificate certifying maintaining physical & electronic transfer facility Regulation 13 (3) - Statement of Investor complaints Regulation 14 – Listing Fees & Other charges Regulation 40 (9 - Certificate from Practicing Company Secretary|
|Clause 49 - Corporate Governance||Regulation 27 (2)- Corporate Governance|
|Reconciliation of Share Capital Audit Report||Reconciliation of Share Capital Audit Report|
|Clause 54 Company should have its own website||Regulation 46 Company should have its own website|