29 December 2011
If the company have been delisted under chapter III or Chapter VII (except regulation 27), then that company can not be relisted for a period of 5 years from the date of delisting. In this case there is no restriction on the subsidiary company for the public issue. Therefore the subsidiary company can come out with the Public issue. However, the fact of delisting of the holding company need to be mentioned in the prospectus. For IPO the subsidiary company has to follow the SEBI(ICDR) Regulations, 2009.
On the other hand, if the company have been compulsorily delisted under Chapter V, then the company itself, its whole time directors, its promoters and the companies which are promoted by any of them shall not directly or indirectly access the securities market or seek listing for any equity shares for a period of 10 years from the date of such delisting. Therefore in this case the subsidiary company can not come out with the Public issue.
CAclubindia
