Voluntary delisting: board and shareholder approvals required with merchant banker due diligence and exit opportunity compliance. Regulation 8 prescribes prerequisites for voluntary delisting where an exit opportunity is required: board approval, shareholder approval by special resolution with specified public shareholder voting superiority, in principle approval from the recognised stock exchange followed by a final application within prescribed timeframes. Prior disclosures to exchanges and appointment of a merchant banker for due diligence are required, with submission of trading and off market transaction details; the merchant banker must certify compliance of promoters/acquirers with securities laws and whether transactions facilitating delisting contravened applicable restrictions. The stock exchange must process applications within the prescribed short period and may require verification of listed compliance and investor protection matters, and the final application must include proof of providing the exit opportunity.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Voluntary delisting: board and shareholder approvals required with merchant banker due diligence and exit opportunity compliance.
Regulation 8 prescribes prerequisites for voluntary delisting where an exit opportunity is required: board approval, shareholder approval by special resolution with specified public shareholder voting superiority, in principle approval from the recognised stock exchange followed by a final application within prescribed timeframes. Prior disclosures to exchanges and appointment of a merchant banker for due diligence are required, with submission of trading and off market transaction details; the merchant banker must certify compliance of promoters/acquirers with securities laws and whether transactions facilitating delisting contravened applicable restrictions. The stock exchange must process applications within the prescribed short period and may require verification of listed compliance and investor protection matters, and the final application must include proof of providing the exit opportunity.
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