InvestorQ : Can you tell me about the latest rules put out by NSE for companies that go into bankruptcy like Jet, DHFL, IL&FS?
vidhya Laxmi made post

Can you tell me about the latest rules put out by NSE for companies that go into bankruptcy like Jet, DHFL, IL&FS?

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sarah Leo answered.
3 months ago
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These regulations were long overdue, but have bean finally announced by NSE and BSE. Here is what it quickly says.

· The first stipulation pertains to transparency and disclosure. Going ahead, the resolution plan be disclosed to the stock exchanges within 30 minutes of NCLT giving its oral approval.

· In addition, the company must notify about the said NCLT hearing at least 2 days in advance to the exchange. These will ensure that there is no information asymmetry edge to some privileged players.

· Going ahead, when companies are referred to NCLT, they will be tagged appropriately with a special code to identify them as NCLT cases. In addition, alerts will be given to the trader even at the time of order entry.

· More importantly, if the value of the listed securities is zero or if the company is going to be delisted or if entire equity is cancelled without payment, then trading in such stocks will be suspended with immediate effect.

This should be helpful, although retail investors can also help by not falling prey to such fly-by-night calls and stocks.

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