Bombay Stock Exchange (BSE), vide its earlier Communication revised the Norms for “Revocation of Suspension” and the same were to be effective from 1st July 2011.
Now, vide its Communication dated 29th June 2011, it has extended the date for implementation of the revised norms from 1st July 2011 to 1st October 2011.
For a ready reference, the new Norms for Revocation of Suspension to be applicable from 1st October 2011 are as under:
New Provisions
1. Issued and Paid Up Capital : Minimum Rs. 10 Crores
or
Net Worth (excluding revaluation reserves) : Minimum Rs. 50 Crores in 3 immediately preceding financial years
2. Profit Making Track Record (Extraordinary income shall not be considered for calculating distributable profits)
Distributable profits In terms of Sec. 205 of the Companies Act, 1956 for at least 3 out of 5 immediately preceding years based on audited financial results with the last financial year reporting profit
3. Public Shareholding : As per SCRA, SCRR and Listing Agreement
4. No. of Public Shareholders :Minimum 500
5. Trading in Compulsory DEMAT: Minimum 50 % of the public shareholding to be in demat form
There must be a cut off date, that is welcome. However keeping in mind Period July to September, where all professionals are busy with annual compliance whether it is income tax or registrar of companies , the same is not justified. Hence in my view the same must be extended till 31.03.2012 keeping in the mind the larger interest of investors and stock market