Schneider Electric To Relist On A National Exchange

Schneider Electric President Systems Ltd. withdrew its appeal before the Securities Appellate Tribunal on Wednesday, paving the way for a listing on a national exchange.

The tribunal accepted the withdrawal application and directed the company to comply with the SEBI order to either relist or delist within six months. The company's lawyers have informed the exchange that Schneider will opt to relist on a national bourse.

Schneider had approached the appellate tribunal against a 2021 order by the Securities and Exchange Board of India. The regulator had directed it to either delist by following the reverse bookbuilding process or list on a national exchange.

SEBI's order from two years ago followed Schneider's failure to relist despite multiple circulars urging companies listed on regional stock exchanges to move to a national exchange.

Schneider, which was listed on the Bangalore Stock Exchange and Pune Stock Exchange, saw these circulars as an opportunity to get derecognised without complying with the Delisting Regulations; several shareholders had complained to the regulator.

SEBI agreed with the shareholders and pointed out that as long as the company met the eligibility criteria to be listed on a national bourse, it cannot be allowed to take advantage of the diluted Delisting Regulations.

A company that was only listed on a regional exchange but was eligible to list on a national bourse cannot unilaterally opt for delisting by taking recourse under the 2016 circular, SEBI said in its 2021 order.

"Such companies can delist only through the process laid down in the Delisting Regulations and not by availing the relaxations under the 2016 circular."

The 2016 circular gave companies ineligible to list on a national exchange the option to delist without going through the reverse bookbuilding process. Accordingly, SEBI had directed Schneider to delist by following the reverse bookbuilding process or relist within six months.