Delisting process: voluntary and compulsory rules require shareholder approval, transparent book building exit and investor compensation. The Guidelines govern both voluntary and compulsory delisting to protect investors. Voluntary delisting requires shareholder special resolution, a public announcement, appointment of an independent merchant banker, application to the delisting exchange and adherence to a book building process for exit price with escrow funding and cash settlement. Promoters may accept or reject the discovered price but must restore public shareholding if they decline. Exchanges may compulsorily delist for prolonged suspension or non compliance after prescribed notice and representation procedures, and promoters must compensate holders at fair value determined by arbitration.
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.
Delisting process: voluntary and compulsory rules require shareholder approval, transparent book building exit and investor compensation.
The Guidelines govern both voluntary and compulsory delisting to protect investors. Voluntary delisting requires shareholder special resolution, a public announcement, appointment of an independent merchant banker, application to the delisting exchange and adherence to a book building process for exit price with escrow funding and cash settlement. Promoters may accept or reject the discovered price but must restore public shareholding if they decline. Exchanges may compulsorily delist for prolonged suspension or non compliance after prescribed notice and representation procedures, and promoters must compensate holders at fair value determined by arbitration.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
