PR No – 365
26 December, 2022
PHD Chamber urges Hon’ble Finance Minister to Provide One Time Relaxation for Small Listed Companies for delisting from Calcutta Stock Exchange
In a representation submitted to Hon’ble Finance Minister, Smt. Nirmala Sitharaman, PHD Chamber has called for giving a one-time relaxation for small listed companies listed on Calcutta Stock Exchange and having a paid-up capital of 25 lacs owing to non-compliance, or delay in compliances, which is eventually leading towards erosion of the total Capital of the Small Companies. The penalties are being imposed irrespective of the size, capital and net worth of the company.
It may be highlighted that SEBI (Securities and Exchange Board of India, 1992) was set up with the idea of protecting the shareholder’s interest, such that they are saved from any misconduct, but if such huge penalties are imposed on such Small Companies then it would erode away the whole capital leaving nothing behind for the shareholders, thus impacting them, which is eventually not in line with the objectives of SEBI, said the industry body PHDCCI.
It may be noted that Calcutta Stock Exchange has suspended its operations from 2013, which is more than 8 years ago and since then there has been no trading or any other operation being carried on by the same. Shareholders aren’t getting any facility from Calcutta Stock Exchange even after making the payment of listing fees so as to know the status and day to day affairs from the stock exchange. On the contrary, no information is being circulated through any post or email media, said PHDCCI.
Many small companies which are inactive and do not want to continue should be given a chance to apply for delisting from Calcutta Stock Exchange and they should be allowed to do so by paying a nominal charge. Small Companies suffer due to non-availability of competent manpower, lack of knowledge of the proper compliance and in such scenario huge penalties put a very negative impact on the smooth flow of work, said PHD Chamber.
As per new norms, minimum capital requirement for listing a Company in Stock Exchange is Rs.10 crores. Special provisions should be made for small companies so that they are barred from the hassle of fulfilling a plethora of compliances while going for delisting of their company. A Single Window System should be made so that a minimal penalty, which should not exceed 1-2% of the total capital, should be levied on the small companies so that the burden on them is not huge.
PHD Chamber is of the view that those Companies which are having capital of less than 1 crore and want to delist themselves from the Calcutta Stock Exchange should be allowed to do the same with no penalty or penalty not exceeding 1-2 % of the total capital.