New Delhi, Sep 24:
Mining giant Vedanta on Friday said the decision to delist American depositary shares from the New York Stock Exchange (NYSE) is aimed at simplification and triggered by the low trading volumes in the security.
The statement comes a day after Vedanta announcing that it will delist its American depositary shares and concentrate all trading of its equity shares on the BSE and NSE.
“The decision to delist American depositary shares from NYSE is aimed at simplification and triggered by the low trading volumes in the security that doesn’t justify the concomitant costs and related statutory obligations,” Vedanta said in a statement.
On the other hand, the Vedanta share is extremely liquid on Indian bourses with high daily volumes and provides both efficient price discovery and ample buy-sell opportunity to investors, including global ones, it said.
“A number of other companies have also followed this path in the recent past, considering that the depth of our domestic stock exchanges has gone up significantly while technology has made it easier to invest from any part of the globe,” it added.
On Thursday, the company had said in a filing to BSE that it also intends to deregister such American depositary shares (ADSs) and the underlying equity shares and terminate the reporting obligations pursuant to the US Securities Exchange Act of 1934.
Upon delisting of its ADS programme, the company will concentrate all trading of its equity shares on BSE Ltd and the National Stock Exchange of India Ltd in India (NSE), the filing had said.
The company’s board of directors has taken into account the recent low trading volume of its ADS on the NYSE and the associated costs of maintaining the listing and related obligations.
“The company intends to file a Form 25 with the Securities and Exchange Commission (SEC) on or about October 29, 2021 to delist its ADSs from the NYSE,” it had said.
The delisting is expected to become effective 10 days thereafter, at which time the ADS of the company will no longer be listed for trading on the NYSE. (PTI)
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