Prohibition on raising further capital: suspended firms and their promoters barred from public offers and share transfers. SEBI prohibits a suspended company, its holding/subsidiary and its promoters and directors from issuing prospectuses, offer documents or soliciting public subscription of securities until suspension is revoked or securities are delisted; SEBI may relax this restriction on exchange recommendation. Transfers (sale, pledge, etc.) of shares held by promoters, promoter group and directors of a suspended company are barred until three months after suspension revocation or until delisting, with exchanges and depositories coordinating enforcement and promoters/directors able to apply to the exchange to remove the restriction for satisfactory reasons.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prohibition on raising further capital: suspended firms and their promoters barred from public offers and share transfers.
SEBI prohibits a suspended company, its holding/subsidiary and its promoters and directors from issuing prospectuses, offer documents or soliciting public subscription of securities until suspension is revoked or securities are delisted; SEBI may relax this restriction on exchange recommendation. Transfers (sale, pledge, etc.) of shares held by promoters, promoter group and directors of a suspended company are barred until three months after suspension revocation or until delisting, with exchanges and depositories coordinating enforcement and promoters/directors able to apply to the exchange to remove the restriction for satisfactory reasons.
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