Mumbai: The Securities and Exchange Board of India (SEBI) to cut the number of listed firms on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) as it seeks to improve governance and investors confidence.
SEBI chief UK Sinha said on Wednesday that the regulator is targeting around 3,000 listed companies on the regional stock exchanges and about 1,200 on national stock exchanges, where trading has been suspended for seven years.
“We will ask stock exchange concerned to appoint third party firms to determine the valuation of these firms to provide an exit to shareholders,” said Sinha.
SEBI will ask the regional stock exchanges to appoint a valuer to decide a fair price for these companies and ask the promoters and companies to buy back the shares. The companies would be barred from raising money if they fail to comply with the order.