Vedanta says decision to delist American depositary shares from NYSE aimed at simplification
Mining giant Vedanta on Friday said the decision to delist American depositary shares from the New York Stock Exchange (NYSE) is aimed at simplification and triggered by the low trading volumes in the security.
''The decision to delist American depositary shares from NYSE is aimed at simplification and triggered by the low trading volumes in the security that doesn't justify the concomitant costs and related statutory obligations,'' Vedanta said in a statement.
On the other hand, the Vedanta share is extremely liquid on Indian bourses with high daily volumes and provides both efficient price discovery and ample buy-sell opportunity to investors, including global ones, it said.
''Several other companies have also followed this path in the recent past, considering that the depth of our domestic stock exchanges has gone up significantly while technology has made it easier to invest from any part of the globe,'' it added.
On Thursday, the company had said in a filing to BSE that it also intends to deregister such American depositary shares (ADSs) and the underlying equity shares and terminate the reporting obligations according to the US Securities Exchange Act of 1934.
The company's board of directors has taken into account the recent low trading volume of its ADS on the NYSE and the associated costs of maintaining the listing and related obligations.
The delisting is expected to become effective 10 days thereafter, at which time the ADS of the company will no longer be listed for trading on the NYSE.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)