I’m not sure of the SEBI rules and regulations around this - but I find it extremely peculiar that a demerger can be completed without all companies involved in the demerger process being listed on the exchange. Is there a timeline by when the demerged company must be listed on an exchange?
Bringing this up because in this case - Sintex Industries traded at 104 before the demerger and now trades at Rs. 25 - so >75% of the capital of an investor has been immediately locked up till the demerged entity gets listed.
Surely there has to be a timeline by when that capital is again available to the investor. If there is no timeline - then SEBI should draft rules around the same and possibly include penalties for not getting listed on time (Ex: Interest @ 12% p.a.)
Also - having gone through some of the press release communication from Sintex Industries on the exchanges, I doubt there are any SEBI rules around deadline for listing of the demerged entity because I don’t remember reading anything like that in their disclosures.
PS: Not that I have any high capital allocation to Sintex but just think that this is an area SEBI can look to improve the process in the interests of shareholders