After opening the day higher, stock markets in India have continued their momentum. Sectoral indices are trading on a positive note with stocks in the realty sector and telecom sector witnessing maximum buying interest.
The BSE Sensex is trading up 148 points (up 0.5%) and the NSE Nifty is trading up 37 points (up 0.4%). The BSE Mid Cap index is trading up by 0.7%, while the BSE Small Cap index is trading up by 1%. The rupee is trading at 64.12 to the US$.
As per an article in the Economic Times, BSE will be compulsorily delisting 200 companies with effect from today. It would also bar the promoters of these companies from accessing the securities market for 10 years.
The move comes as trading in these companies have remained suspended for over a decade.
The above companies belong to various sectors ranging from chemicals sector, pharma sector, finance sector, and textiles sectors.
As per the BSE notification, promoters of these delisted companies will be required to purchase the shares from the public shareholders as per the fair value determined by the independent valuer appointed by the exchange.
The above development also comes at a time when the market regulator is clamping down on shell companies for allegedly being used as channels for illicit fund flows.
Earlier this month, the market regulator had directed stock exchanges to initiate action against 331 suspected shell companies. Shell companies are entities generally used for laundering illegal funds.
Also, as per an article in Livemint, the government has already deregistered more than 1.75 lakh firms that have not been carrying out business activities for long.
The above developments are said to boost investor confidence as well as eliminate black money and laundering of illegal funds in capital markets.
In the news from the automobile sector, the Cabinet is likely to consider an ordinance to increase the cess on mid-size and large cars and sports utility vehicles to 25% from 15% earlier under the Goods and Services Tax (GST) regime.
