Market regulator Sebi today granted exemption to Hindustan Cables from complying with delisting regulations in view of financial crisis and its sick PSU status.
The Securities and Exchange Board of India (Sebi) has directed Hindustan Cables to make the final application for delisting to the concerned stock exchanges within one year.
The move follows as Hindustan Cables sought an exemption from the market regulator from certain provisions of delisting norms for voluntary delisting of its shares from Ahmedabad Stock Exchange and Calcutta Stock Exchange.
Hindustan Cables, which was a pioneer in telecom cable in the country, was registered under Board for Industrial and Financial Reconstruction (BIFR) in 2002. The government owns 99.6 per cent stake in the company, while it has only one public shareholder -- Canbank Mutual Fund-- which holds 0.4 per cent stake.
Due to mounting losses and financial crisis, the company has not been in compliance with various clauses of listing agreement and remains suspended at Calcutta Stock Exchange and Ahmedabad Stock Exchange has also filed for voluntary derecognition.
In an order passed today, the regulator has granted exemption from passing a special resolution under Sebi delisting regulations as well as requirement of making application and obtaining in-principle approval from the recognised stock exchange.
Besides, it has exempted the firm from depositing money in escrow account and minimum number of shares to be acquired among others. The firm has been allowed to make exit offer to the shareholder by sending an Exit Offer letter to the public shareholder due at a price to be determined in accordance with delisting norms.
However, Sebi said, "exemption sought by them in respect of the waiver of fees payable to the stock exchange cannot be granted".
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