SEBI recently issued Delisting Regulations, 2021which provide for delisting of equity shares including equity shares having superior voting rights from all or any of the recognised stock exchanges.

However, the regulation shall not apply to a listed company listed and traded on the innovators growth platform without making a public issue and delisting made pursuant to a resolution plan approved under section 31 of the Insolvency Code subject to specified conditions.

Companies are not permitted delisting of equity shares unless a period of three years has elapsed since the listing of that class of equity shares on any recognised stock exchange subject to other conditions.

The Regulations also provide for conditions and procedure for voluntary delisting where exit opportunity is required and also where exit opportunity is not required, for Compulsory delisting by a recognised stock exchange on any ground prescribed in the rules made under the Securities Contracts (Regulation) Act, 1956 and delisting of equity shares of small companies without following the exit procedure, if paid-up capital is not exceeding ten crore rupees and net worth not exceeding twenty five crore rupees as on the last date of preceding financial year.

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