Securities Exchange Board of India ( “SEBI”) has introduced amendments to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. These changes insert a new chapter specifically addressing the voluntary delisting of non-convertible debt securities (“securities”) and non-convertible redeemable preference shares (“shares”) from stock exchanges.
These provisions apply to all such voluntary delisting, except for cases where:
- The listed entity that has outstanding listed securities or shares issued by way of a public issue.
- The listed entity has more than two hundred securities holders (excluding qualified institutional buyers) for a specific International Securities Identification Number relating to shares and securities.
- The shares or securities have been delisted resulting from penalties or actions initiated against the listed entity under rule 21 of the Securities Contracts (Regulation) Rules, 1957.
- The shares or securities have been delisted due to the redemption of the securities or shares.
- The shares or securities have been delisted pursuant to a resolution plan under Section 31 of the Insolvency Code.
The circular also outlines the procedures for stock exchange approval, consent of holders, no-objection letter from the debenture trustees, and other obligations of the listed entity in such cases.
For a detailed read, please refer to the hyperlink below.
Source : Securities Exchange Board of India
