PHD Chamber has called for giving a one-time relaxation to small listed companies listed on Calcutta Stock Exchange and having a paid-up capital of 25 lacs for 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, PHDCCI said in a representation to Calcutta Stock Exchange.
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 carried out by the stock exchange. 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. Also, 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 man power, 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 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, PHDCCI opined.
PHD Chamber is of the view that an amnesty scheme may be launched to give one-time relaxation for listed companies for delisting by paying one time fees/fine or for settling their outstanding dues.
PHD Chamber has made a similar representation before the Hon’ble Finance Minister and SEBI Chairperson as well.
