In a bid to address information asymmetry among investors, stock exchanges, BSE and NSE, on Friday came out with a framework for dealing with companies undergoing corporate insolvency resolution process.
In the recent past, the exchanges have come across instances where the approved resolution plan provides for delisting of the company or write off/cancellation/extinguishment of existing equity shares without any payout or consideration to the existing shareholders.
However, it is observed that there is a considerable time lag between the pronouncement of verbal order by NCLT and the final written order by NCLT, the exchanges said in separate statements.
“Companies generally hold on to the information and do not make any/ timely disc…
Read the full article at: https://www.livemint.com/market/stock-market-news/bse-nse-issue-guidelines-for-companies-undergoing-insolvency-resolution-process-11625822242634.html
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