Tribunal junks appeal against BSE decision to delist firm

The Securities Appellate Tribunal (SAT) has quashed an appeal against the BSE's decision to delist a company wherein trading of shares was suspended for a long time due to non-compliance of norms.

The decision is being seen as a major boost to market regulator Sebi's and BSE's initiatives to cleanse the markets by weeding out all such companies where trading activities have been missing for a long time but their continued presence poses a significant risk for investors.

In the present case, Chennai-based Mother Mira Industries had filed an appeal before SAT against BSE's deci sion last year to com pulsorily delist the company under the Sebi delisting regulations.

The company had alleged that BSE took the decision “without giving an opportunity of hearing“ and that the show-cause notice was sent to an old address, while asking the SAT to quash and set aside the decision.

The Tribunal however ruled that it saw “no merit“ in these contentions and dismissed the appeal as it observed that the equity shares of the company , listed on BSE in 2000, were suspended on October 1, 2002, and that the company made no efforts to get it revoked.