BUSINESS

Relisting? Wait for 10 years

Source:PTI
June 15, 2009 12:37 IST

Companies cannot relist themselves on the bourses for up to ten years after their delisting, instead of two years as was the case earlier.

The re-listing of a company can be done only after ten years, if its delisting is compulsory or initiated by the bourses, while in cases of voluntary delisting, the companies can list themselves again after a gap of five years.

As per the new delisting norms framed by the Securities and Exchange Board of India, small companies and those getting delisted due to winding-up or operation of law, can also get listed again after five years.

Under the earlier guidelines, the companies could apply for relisting of shares on stock exchanges after two years of cooling period.

The regulator has increased the cooling period for companies seeking relisting of shares in its new Sebi (Delisting of Equity Shares) Regulations 2009, which replaces the guidelines issued in 2003.

The regulations further said a company could be delisted only if a promoter hikes its stake to 90 per cent or acquires at least 50 per cent through a share purchase offer aimed at giving the shareholders an exit opportunity.

Source: PTI
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