Delisting of small companies

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purshotam vyas (Querist)
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22 October 2013 Dear all,

one of our group company is going to be delisted. Merchant banker saying that company is not in small company so that delisting will take huge cost and much time. Can anyone give me criteria on which basis we calculate small or big company for delisting purpose ? or any alternative option to convert into small company ?

Thanks in advance.

Ajay Mishra

Ajay Mishra (Expert)
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23 October 2013 For listing there is no criteria of big and small. But if your company shares are listed on both NSE and BSE then it is lengthy process of delisting.

A company, whose securities have been listed for a minimum period of 3 years on any stock exchange, may delist from stock exchange where its securities are listed.

However, an exit opportunity is required to be given to the investors for the purpose of which an exit price shall be determined in accordance with the book building process.
Companies whose securities are continued to be listed on any stock exchange having nation wide trading terminals like Mumbai Stock Exchange or National Stock Exchange is not required to give exit opportunity to its investors.

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