The company in December 2019 had moved a plea to seek exemptions from certain provisions of Delisting of Equity Shares Regulations, according to a Sebi order released on Friday.
The equity shares of the applicant are listed on Calcutta Stock Exchange Limited (CSE), Sebi noted.
Regulation 27 of the delisting regulations permits delisting of equity shares of a small company from all recognised stock exchanges without following the extensive procedure under the norms, subject to the fulfilment of criteria.
The company sought exemption from minimum public shareholding requirement and certain provisions of delisting regulations.
In its application, the firm said 96.37 per cent of the shares of the firm are held by promoters and promoter group and the remaining 3.63 per cent are held by 13 public shareholders.
The company satisfies all the criteria specified in Regulation 27 except that of net worth. Net worth of the applicant is Rs 72.55 crore as against the limit of Rs 25 crore specified in the regulation.
As regards the steps taken to comply with minimum public shareholding requirement, the company submitted that since there are only 13 public shareholders and the CSE is non-operational and the company is not listed on any nationwide stock exchange, there is no investor interest in the shares of the company and hence, various methods prescribed by Sebi to achieve MPS compliance were not feasible.
While allowing the relaxation, Sebi asked the firm to comply with provisions of all other applicable laws and initiate voluntary delisting of its equity shares within one month and complete the process within one year from the date of the order.
if(geolocation&&geolocation!=5&&(typeof skip=='undefined'||typeof skip.fbevents=='undefined'))