| | The Governing Board of BSE in its meeting held on 16th January, 2002, has approved amendments to guidelines for shifting/retaining companies to/in the "Z" Group. As per the revised guidelines, BSE shall consider any three out of the following seven criteria of non-compliance of the Listing Agreement for shifting a company to the "Z" Group. | Listing Agreement Clause | Description | | Clause 15 & 16 | Required notice of Book Closure & Record Dates. | | Clause 31(1)(a) | Yearly submission of Annual Reports. | | Clause 35 | Quarterly submission of shareholding pattern. | | Clause 38 | Payment of Annual Listing Fees. | | Clause 41 | Publication of Audited / Unaudited results on a quarterly basis. | | Clause 3, 12, 21 | Redressal of Investors' Complaints (regarding share transfers etc.) | | Clause 49 | Implementation of corporate governance, if applicable. |
Additionally, BSE may shift such companies to the "Z" Group, which in its discretion, are fundamentally weak in terms of net worth, sales, market capitalization and/or profitability. In addition,- The Governing Board/Listing Committee of BSE shall have the discretionary powers to shift any company to and from the "Z" Group.
- The Surveillance Department of BSE shall have the discretionary powers to add or remove companies from the "Z" Group based upon its investigations/complaints/trading behaviour, etc.
- The Investor's Service Cell of BSE shall have the discretionary powers to add or remove companies from the "Z" Group.
- Companies who fail to make demat arrangements with both the depositories would compulsorily be shifted to the "Z" Group.
- BSE shall also take into account punitive actions, if any, taken by any regulatory authorities against a company for shifting it to the "Z"Group.
- Notwithstanding above,BSE may suspend trading in any security for non-compliance of any one or more clauses as it may consider necessary.
The companies in the "Z" group are reviewed on a quarterly basis. | |
