Revocation of Suspended Companies

Revocation of Suspension of Trading

Where a listed Company makes default in Listing Compliances including payment of listing fee then the stock exchange has the power to suspend the trading in shares of the listed Company.

Repercussions of Suspension of Trading of Shares:

Inverse impact on Company's Image
Freezing of promoter's demat account
Hefty amount of penalty
Shares move to Z Category (Trade to Trade Segment)
Suspension continues to more than 6 months can leads to compulsory delisting
Constraint acquirer for Voluntary delisting
Limitation on raising of fund by fresh issue of shares

Consequences of Compulsory Delisting

1. Restriction in accessing the Capital Market for 10 years on

– Company
– Promoter
– Whole Time Director
– Person responsible for ensuring compliance
– Any Company which is promoted by any of above Person

2. Restriction in appointment as a director in other listed Company on

– Promoter
– Whole Time Director
– Person responsible for ensuring compliance

Other inverse impact on Promoter(s):

– No corporate benefits ( dividend, rights, bonus shares, split, etc.)
– Company and the depositories shall not effect transfer, by way of sale, pledge, etc.

We help suspended listed Companies in revocation of suspension of trading in shares by giving solutions in form of:

– Keeping the non-compliances good

– Liasoning with the Stock Exchange
– Penalty waiver by filing application with the stock exchange
– Restructuring in the Company
– Assistance in providing exit opportunity
– Handholding in regular listing compliances