Market regulator Sebi has said promoters of compulsorily delisted companies will not be allowed to sell their shares or take dividends till they provide an exit option to the public shareholders.
Tightening the norms, Securities and Exchange Board of India said it is being done to ensure effective enforcement of exit option to the public shareholders in case of compulsory delisting.
A recognised stock exchange has powers to compulsorily delist shares of a listed company on certain grounds.
In a circular, Sebi said compulsorily delisted firms, that have a positive fair value, should not affect transfer of shares owned by its promoters.
Besides, the promoters’ corporate benefits including dividend and bonus would be frozen till they provide an exit option to the public shareholders.