In what could possibly be the death knell for Kingfisher Airlines, NSE (National Stock Exchange) is all set to delist the tainted airlines on 30 May, 2018, along with other companies such as Crest Animation, Agro Dutch Industries, Broadcast Initiatives, etc. The decision by the National Stock Exchange comes just after the Bombay Stock Exchange (BSE) delisted more than 200 companies on 11 May, 2018, as the companies that were shown the door were already suspended from trading shares for about six months. According to a source, the delisting by the NSE and the BSE is due to companies using the trade platform for illicit fund flow.
With the Government of India deregistering more than 2 lakh firms for their businesses being inactive recently, Securities and Exchange Board of India (SEBI) has directed the Stock Exchange Firms to suspend 331 shell companies that are suspected to be using the trade funds to exchange illicit money. In a statement, the NSE said it will delist a number of companies as of 30 May, 2018. Apart from Kingfisher Airlines, Nissan Copper, Broadcast Initiatives, Crest Animation Studios, Agro Dutch Industries, Kemrock Industries, KDL Biotech, Shri Aster Silicates, Lumax Automotive Systems and Surya Pharmaceuticals will be delisted by the NSE by the end of the month. In addition, firms such as Brandhouse Retails, Tulip Telecom Elder Pharmaceuticals,, Glodyne Technoserve, First Leasing Company India, Matheson Information Technology, Helios, and Varun Industries will be delisted for liquidation.
As per the delisting regulation, all compulsory delisted companies, as well as the director and promoters will be banned from the security trade market for a decade from the date of the delisting.