KESARI PRINTERS LTD. Vs. STOCK EXCHANGE

JUDGEMENT

(1.) THIS appeal under Section 23L read with Section 21A of the Securities Contracts (Regulation) Act, 1956 is directed against the order dated 2 -7 -2004 delisting the appellant company which was earlier listed on the Bombay Stock Exchange. During the pendency of the appeal several efforts were made if the parties could amicably settle the dispute but this was not possible. Even when the appeal came up for hearing on 5 -6 -2007 we asked the respondent Exchange to examine whether the appellant company could be re -listed without insisting for some of the compliances which we thought could be ignored. In pursuance to our order dated 5 -6 -2007 the matter was placed before the listing committee of the Exchange which expressed its inability to re -list the company without the compliance of the guidelines issued by the Securities and Exchange Board of India (for short "the Board"). It would be pertinent to mention that the appellant company was delisted on account of non -compliance of the requirements of the Exchange. During the course of the hearing, the learned Counsel for the respondent Exchange placed before us a copy of the letter dated 1 -6 -2007 issued by the Exchange to the appellant pointing out various requirements of the Exchange on the compliance of which the appellant company could be relisted. We have perused the said letter and find that out of the eight, requirements, the appellant has not complied with five of them.

(2.) THE -requirements which have not been complied with are that the company should have a minimum net worth of Rs. 20 crores and that it should have a profit making and dividend paying track record for the last three consecutive years. The company has also not signed agreements with the two depositories for demat trading. It is relevant to mention that some of the requirements enumerated by the Exchange have been incorporated on the basis of the Securities and Exchange Board of India (Delisting of Securities) Guidelines issued by the Board. In order to comply with the requirements, the appellant company will have to wait for some more time and show results and satisfy the benchmark prescribed by the listing/relisting guidelines issued by the Exchange.