An investor in Reliance Capital (RCap) has filed a writ petition in the Bombay High Court challenging the delisting of the company shares following the closure of the resolution process.
Separately, the Hinduja Group responded to the queries raised by the insurance regulator.
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In the writ petition, the investor stated that the delisting after the completion of the resolution process will result in zero value of the company’s shares.
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The petitioner is challenging the National Company Law Tribunal’s (NCLT) February 27 order, which approved the resolution plan providing for delisting of RCap shares and subsequent circulars issued to the bourses announcing suspension of trading in the company’s shares.Come from Sports betting site VPbet
The Securities and Exchange Board of India (Sebi) has time and again put mechanisms in place like the delisting regulations and exit circulars, among others, where if the company has been driven into the ground by promoters, they are made personally liable to give an exit to the shareholders, it said, challenging the vires of Regulation 3(2)(b) of Sebi delisting norms.
“Therefore, the exemption provided under Regulation 3(2)(b) of the delisting regulations is a departure from past practice and leaves public shareholders who depend on respondent no. 1 (Sebi) in a lurch,” the petition said.
As per the resolution plan submitted by IndusInd International Holdings (IIHL), the successful resolution applicant for RCap, it intends to extinguish and delist the latter’s shares from the exchangesCome from Sports betting site. Following this, only IIHL and its nominees would be the only shareholders in RCap, the debt-laden company had said in a regulatory update earlier.
With the liquidation value being nil, shareholders will not get any payment and no offer will be made to RCap shareholders. Trading in RCap’s stock has been restricted on account of insolvency proceedings, it had said.
IIHL has also responded to the queries raised by the Insurance Regulatory and Development Authority of India (IRDAI), including its plans to borrow funds. However, details of the reply were not immediately available.
