Delisting of securities :
Rule 21 deals with delisting of Securities. A recognized stock exchange may, without prejudice to any other action that may be taken under the Act or under any other law for the time being in force, delist any securities listed thereon on any of the following grounds in accordance with the regulations made by SEBI, namely:—
(a) the company has incurred losses during the preceding three consecutive years and it has negative networth;
(b) trading in the securities of the company has remained suspended for a period of more than six months;
(c) the securities of the company have remained infrequently traded during the preceding three years;
(d) the company or any of its promoters or any of its director has been convicted for failure to comply with any of the provisions of the Act or SEBI Act, 1992 or the Depositories Act, 1996 or rules, regulations,
agreements made thereunder, as the case may be and awarded a penalty of not less than rupees one crore or imprisonment of not less than three years;
(e) the addresses of the company or any of its promoter or any of its directors, are not known or false addresses have been furnished or the company has changed its registered office in contravention of the provisions of the Companies Act, 2013, or;
(f) shareholding of the company held by the public has come below the minimum level applicable to the company as per the listing agreement under the Act and the company has failed to raise public holding to the required level within the time specified by the recognized stock exchange.
However, no securities shall be delisted unless the company concerned has been given a reasonable opportunity of being heard.
(2) If the securities is delisted under clause (1),
(a) the company, promoter and director of the company shall be jointly and severally liable to purchase the outstanding securities from those holders who wish to sell them at a fair price determined in accordance with regulations made by SEBI, under the Act; and
(b) the said securities shall be delisted from all recognized stock exchanges.
(3) A recognized stock exchange may, on the request of the company, delist any securities listed thereon in
accordance with the regulations made under the Act by SEBI, subject to the following conditions, namely :
(a) the securities of the company have been listed for a minimum period of three years on the recognized stock exchange;
(b) the delisting of such securities has been approved by the two-third of public shareholders; and
(c) the company, promoter and/or the director of the company purchase the outstanding securities from those holders who wish to sell them at a price determined in accordance with regulations made by SEBI under the Act.
However, the condition at (c) may be dispensed with by SEBI if the securities remain listed at least on the
National Stock Exchange of India Limited or the Bombay Stock Exchange Limited.