The Securities and Exchange Board of India (SEBI) is seeking to delist inactive firms, Chairman Tuhin Kanta Pandey said at an Oct. 31 Kolkata event, citing investor risks, Press Trust of India (PTI) reported.
PTI reported that Pandey linked continued listings to potential risks for investors. Pandey also cited the use of some firms’ shares in pump-and-dump operations and warned that social media groups might put additional investors at risk, PTI reported. “We are making efforts towards their delisting,” Pandey said, according to PTI.
Reports described SEBI’s artificial intelligence (AI) surveillance differently. PTI reported that SEBI was applying AI to account review. The Economic Times separately reported a plan for AI to monitor companies with little economic activity and generate alerts faster. Neither report outlined the surveillance effort’s scope.
Neither report named firms targeted for delisting, set out a test for economic inactivity or gave a timetable. They also did not explain how current shareholders would be treated. The reports gave no share-price threshold and did not say the plan covered every penny stock.
The reports gave no date for any delistings.
