MUMBAI: To protect interests of investors of companies listed solely on de-recognised exchanges, BSE has shifted nine firms listed on the Bangalore Stock Exchange to the dissemination board.
The move would help buyers and sellers of the securities of these companies to disseminate their bids/offers using the services of the trading members of BSE.
BSE dissemination board is an information disseminating mechanism made available on the bourse’s website for buyers and sellers of companies, that are listed exclusively on exiting or de-recognised Regional Stock Exchanges (RSEs) and have failed to obtain listing on any RSE.
Bangalore Stock Exchange is in the process of exiting as a bourse and in view of the same, the nine firms, listed exclusively on the exchange, had been admitted to BSE dissemination board earlier this week.
The nine firms admitted are — Cochin Plantations, Kap Chem Ltd, Kap Steels, Fourenn Apparels, Polar Investments, Raasula Securities, Mysore Vegetable Oil Products, Agro Extracts Ltd and Synfosys Business Solutions.
“Trading Members are requested to note that the companies admitted to BSE Dissemination Board are not listed with BSE (are treated as unlisted companies),” BSE said in a circular.
“There will be no listing agreement executed by BSE with these companies,” it added.
The exchange also said that there would be no monitoring of any compliance with respect to filings made by these firms and that information received from them would be disseminated on the dissemination board platform.
Besides the companies on Bangalore Stock Exchange, three firms listed on Hyderabad Securities Enterprises (formerly known as Hyderabad Stock Exchange Ltd) are also available on the dissemination board of BSE. These are — Pantex Geebee Fluid Power, Kanakavarsha Securities and CMH Tools.
As per market regulator Sebi’s norms, companies listed exclusively on exiting or de-recognised regional stock exchanges (RSE) are required to be listed on at least one other regional bourse.
However, those companies which fail to list on any other RSE are treated as unlisted entity and have to be moved to dissemination board by the de-recognised bourse.
The board is required to be set up by stock exchanges having nationwide trading terminals such as BSE.
Under the BSE dissemination board, brokers of the exchange act as “point of contact” for registered client, for executing the bid/offers placed by such client.
Among others, there is no matching of trades on the board and the trades are cleared and settled outside BSE/Indian Clearing Corporation, while the investors also do not have any recourse to the investor grievance redressal mechanism, including arbitration and investor protection fund.