Accordingly, the proposed mechanism would apply to the voluntary delisting of all listed non-convertible debt securities from all or any of the recognised inventory exchanges.
The proposed mechanism wouldn’t be relevant to the delisting of non-convertible debt securities of a listed entity which have been delisted by the inventory exchanges as a consequence of any penalty or delisted beneath a decision plan permitted beneath the IBC.
However this, a listed entity that has greater than 200 non-QIB holders in any ISIN (Worldwide Securities Identification Quantity) regarding listed non-convertible debt securities, shouldn’t be capable of voluntarily delist any of its listed non-convertible debt securities, Sebi stated. The regulator got here out with the proposal within the absence of any particular provision for the delisting of non-convertible debt securities within the extant provisions.
The Securities and Trade Board of India (Sebi) has sought public feedback on the proposals by Might 26.
Within the proposed mechanism, the listed entity should make an utility to the inventory alternate for in search of in-principle approval of the proposed delisting of non-convertible debt securities inside 15 working days from the date of passing of the particular decision.