Sherza Ventures Limited, which has over 7,600 shareholders, was delisted from the stock exchange with effect from yesterday. This means its shares can no longer be bought or sold on the stock exchange. The decision comes after the company failed to meet listing requirements despite being given six months to address the issues.
Sherza Ventures Limited was first suspended from the Royal Securities Exchange of Bhutan’s trading list in November last year for not complying with listing rules. Listing rules are a set of rules that a company must follow to stay on the stock market and allow people to buy and sell their shares.
The suspension ended on 10th May this year, during which the company was given six months to fix the issue and meet the required listing standards.
However, the Royal Securities Exchange says the problems were still not resolved even after the suspension period.
After reviewing the company’s explanation, the Listing Committee found that the issues were still not resolved and decided to delist the company.
As a result, the company’s shares can no longer be traded on the stock market. Shareholders, however, will continue to own their shares, but they will lose the ability to trade them freely. The company will continue to operate as an unlisted entity under the Corporate Regulatory Authority. It will remain in business, but its shares will no longer be part of the stock exchange trading system.
According to the Stock Exchange, Sherza Ventures Limited can apply for listing again only after a two-year cooling-off period. The Royal Securities Exchange said the decision is meant to ensure companies follow market rules and maintain investor confidence in the stock market.
As of today, there are 17 companies in the Royal Securities Exchange stock market.
Kinley Bidha
Edited by Sonam Pem
