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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.
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