Balkrishna Paper Mills' Capital Reduction Scheme Returned by Exchanges

Balkrishna Paper Mills Ltd's proposed Scheme of Reduction of Share Capital, aimed at writing off accumulated losses against share capital, has been returned by BSE and NSE. The exchanges stated that the scheme falls under Regulation 37(6)(b) of SEBI (LODR) Regulations, which exempts such schemes from requiring their observation letter/approval. This regulation applies to schemes solely providing for writing off accumulated losses against share capital uniformly across all shareholders on a pro rata basis. The reduction of unlisted Non-Convertible Redeemable Preference Shares (NCRPS) is also outside SEBI's purview. The scheme still requires approvals from the National Company Law Tribunal (NCLT) and the company's shareholders.