TO DELIST, COS WITH NEAR- THRESHOLD PUBLIC MONIES MUST BUY BACK 50%
The companies in which public shareholding is marginally above the mandatory requirement for remaining listed would be able to delist only if at least 50% of the public shareholders respond to its
buyback offer. Insertion of the clause would ensure that promoters do not indulge in frivolous delisting from stock exchanges. In other words, if public shareholding in a company is 12% - just 2% more than the norm of 10% - it would be allowed to delist only if kit manages to acquire at least 6%
from shareholders. According to current norms, if shareholding falls below the minimum prescribed level, the company can go in for voluntary delisting.
buyback offer. Insertion of the clause would ensure that promoters do not indulge in frivolous delisting from stock exchanges. In other words, if public shareholding in a company is 12% - just 2% more than the norm of 10% - it would be allowed to delist only if kit manages to acquire at least 6%
from shareholders. According to current norms, if shareholding falls below the minimum prescribed level, the company can go in for voluntary delisting.
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