New Delhi : Companies cannot apply for voluntary delisting of their shares unless they have been listed in a recognised stock exchange for at least three years, according to Sebi, reports PTI. Besides, the regulator said no recognised stock exchange will permit such delisting until three years have passed since the listing of the shares of that company.
The Securities and Exchange Board of India (Sebi) has given this view on an application filed by Fiber Plus Industries seeking informal guidance regarding voluntary delisting.
The company was listed on Delhi stock exchange (DSE) for more than 15 years. Post derecognition of DSE in 2014, the shares of the firm got listed on the Metropolitan Stock Exchange from February 2015.
Citing a provision in delisting regulations, the watchdog said shares proposed to be delisted should have had the ‘listed status’ on any recognised stock exchange for three years prior to the application for delisting. “… the equity shares of Fibre Plus Industries appear to qualify within the provisions for the purpose of voluntary delisting,” the regulator said.
Sebi has also made it clear that the view is based on the information furnished in the company’s letter. “Different facts or conditions might lead to a different result. Further, this letter does not express a decision of the board on the questions referred,” it noted. The watchdog also said its views are expressed with respect to clarification sought in terms of Sebi delisting regulations and are not applicable to any other Sebi regulations.
