Vedanta Ltd issues clarification on decision to delist its ADS from NYSE

Anil Agarwal's Vedanta Ltd on Friday said that its decision to delist American depositary shares from the New York Stock Exchange is aimed at simplification, triggered by the low trading volumes in the security. It said the move became easier considering that the depth of Indian stock exchanges has gone up significantly while technology has made it easier to invest from any part of the globe

New Delhi:Anil Agarwal's Vedanta Ltd on Friday said that its decision to delist American depositary shares (ADS) from NYSE is aimed at simplification, triggered by the low trading volumes in the security that doesn't justify the concomitant costs and related statutory obligations.

On Thursday, Agarwal had announced Vedanta's decision to delist its ADS and concentrate all trading of shares on Indian bourses -- the BSE and NSE. "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 the investors, including the global ones," a company statement said, adding that a number of other companies have also followed this path in the recent past.

It said the move became easier considering that the depth of Indian stock exchanges has gone up significantly while technology has made it easier to invest from any part of the globe. Vedanta's board has approved the delisting that will involve deregistering such ADS and the underlying equity shares and terminating the reporting obligations pursuant to the US Securities Exchange Act of 1934, as amended (the Exchange Act) upon, satisfying the relevant criteria. The process is expected to become effective in 10 days after which the shares will no longer be listed for trading on the NYSE.

(IANS)