Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 w.e.f. 10th June 2021.
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.
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.
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.
The Regulations also provide for conditions and procedure for voluntary delisting where exit opportunity is required and also where exit opportunity is not required.
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.
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.
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.