SEBI Introduces Voluntary Delisting Norms for Non-convertible Debt Securities & Non-convertible Redeemable Pref. Shares
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- Last Updated on 28 August, 2023
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Notification No. SEBI/LAD-NRO/GN/2023/149; Dated: 23.08.2023
SEBI has notified the SEBI (LODR) (3rd Amendment) Regulations, 2023. As per the amended norms, a new chapter–VI A has been added which prescribes the framework for voluntary delisting of non-convertible debt securities/non-convertible redeemable preference shares.
It shall not be applicable on certain listed entities like a listed entity that has outstanding listed non-convertible debt securities or non-convertible redeemable preference shares issued by way of a public issue etc.
The listed entity is required to make an application to the relevant stock exchange(s) for seeking in-principle approval for the proposed delisting of non-convertible securities or non-convertible redeemable preference shares in the form specified by the stock exchange within 15 working days from the date of passing of the board resolution to that effect or of receipt of any other statutory or regulatory approval, whichever is later.
Further, the application seeking in-principle approval for the de-listing must be disposed of within a period of 15 working days by the relevant stock exchanges from the date of receipt of such application that is complete in all respects.
The listed entity must ensure that the process of obtaining necessary approval from all the holders of non-convertible debt securities or non-convertible redeemable preference shares commences within 3 working days of the grant of in-principle approval by the stock exchanges.
Also, the stock exchanges must monitor compliance by the listed entity with the provisions of this Chapter and report to the Board all instances of non-compliance as soon as reasonably possible.
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