Accordingly, the proposed mechanism would apply to the voluntary delisting of all listed non-convertible debt securities from all or any of the recognised stock exchanges.
The proposed mechanism would not be applicable to the delisting of non-convertible debt securities of a listed entity that have been delisted by the stock exchanges as a consequence of any penalty or delisted under a resolution plan approved under the IBC.
Notwithstanding this, a listed entity that has more than 200 non-QIB holders in any ISIN (International Securities Identification Number) relating to listed non-convertible debt securities, should not be able to voluntarily delist any of its listed non-convertible debt securities, Sebi said. The regulator came out with the proposal in the absence of any specific provision for the delisting of non-convertible debt securities in the extant provisions.
The Securities and Exchange Board of India (Sebi) has sought public comments on the proposals by May 26.
In the proposed mechanism, the listed entity will have to make an application to the stock exchange for seeking in-principle approval of the proposed delisting of non-convertible debt securities within 15 working days from the date of passing of the special resolution.
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