Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 w.e.f. 10th June 2021.
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These regulations apply to delisting of equity shares of a company including equity shares having superior voting rights from all or any of the recognised stock exchanges where such shares are listed.
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However, the regulation shall not apply to delisting of equity shares of a listed company listed and traded on the innovators growth platform of a recognised stock exchange without making a public issue and delisting made pursuant to a resolution plan approved under section 31 of the Insolvency Code subject to specified conditions.
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Companies are not permitted delisting of equity shares unless a period of three years has elapsed since the listing of that class of equity shares on any recognised stock exchange subject to other conditions.
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The Regulations also provide for conditions and procedure for voluntary delisting where exit opportunity is required and also where exit opportunity is not required.
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The Regulations also provide for Compulsory delisting by a recognised stock exchange on any ground prescribed in the rules made under the Securities Contracts (Regulation) Act, 1956.
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Delisting of equity shares of small companies- Equity shares of a company may be delisted from all the recognised stock exchanges where they are listed, without following the exit procedure. However the company inter alia should not have a paid up capital exceeding ten crore rupees and net worth not exceeding twenty five crore rupees as on the last date of preceding financial year.
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The Regulations inter alia provide for delisting of equity shares of a subsidiary company pursuant to a scheme of arrangement and delisting in case of winding up of a company and de-recognition of a stock exchange.
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