Bombay Stock Exchange to deregister 222 companies from Wednesday

In an effort to clamp down on shell companies being used as conduits for unlawful fund flows, Bombay Stock Exchange (BSE) has decided to delist as many as 222 companies from Wednesday.

The trading in the shares of these companies has remained suspended for over six months.

Under the obligatory regulations for delisted companies, the company, its whole-time directors, promoters and the group firm would be banned from accessing the securities market for ten years.

Over 2 lakh firms that have not been carrying out business activities in a while have been deregistered by the government.

The Securities and Exchange Board of India had guided exchanges to take action against 331 alleged shell companies in August 2017.

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