Sebi gives six more months to Prabhat Dairy for delisting shares

Sebi gives six more months to Prabhat Dairy for delisting shares

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Markets controller Sebi on Monday conceded a six-month augmentation to Prabhat Dairy Ltd (PDL) to finish the delisting cycle.

The organization got shareholders’ gesture for delisting the organization on October 14, 2019. In October this year, PDL mentioned Sebi for half year augmentation for recording the last application for delisting, refering to the cross country lockdown that was forced in March as an explanation.

Under the Sebi standards, an organization is needed to make the last application to stock trades for delisting inside one year of passing the unique goal.

In a six-page request, the guard dog gave an augmentation of a half year to the uncommon goal passed by the shareholders for the delisting of the organization till April 13, 2021, subject to specific conditions.

The controller had requested a measurable review of the organization for 2018-19 and 2019-20. Notwithstanding, because of the lockdown, the legal review measure likewise got deferred, thusly, postponing the criminological review measure.

PDL proclaimed its examined monetary outcomes for the year 2019-20 on October 8.

Looking for augmentation, the organization likewise said it plans to finish the criminological review at the soonest and the delisting of value shares is in light of a legitimate concern for every single public investor.

The augmentation is dependent upon the conditions, including that the organization ought to broaden full collaboration and give all the essential data and archives to the scientific inspector inside 10 working days from the date of this request. It must be done on a convenient premise to guarantee speedy fruition of the legal review at the most punctual.

“Completion of forensic audit (primarily delayed by not providing the requisite information and documents to the forensic auditor) and the outcome of the same appears to have an impact on the interest of the public shareholders.

“Since, the process of forensic audit is in progress and incomplete, it would be in the interest of the minority public shareholders of the PDL that forensic audit is completed before the stock exchanges consider the final application for delisting,” it said.

Credit: Stocks-Markets-Economic Times

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