Exchange date of American Depositary Shares extended till Jan 10: Vedanta

Topics Vedanta  | shares

Vedanta

Vedanta Ltd on Monday said it has decided to extend the date by which holders can surrender their American Depositary Shares to the depositary in exchange for the underlying equity shares of the company from December 8 to January 10 next year.

Holders of American Depositary Shares (ADS) can now surrender their ADSs at any time on or prior to January 10, 2022, Vedanta said.

"In order to provide more time to the ADS holders, the Company has decided to extend the date...," it said in a filing.

Starting on or about January 11, 2022, the depositary may attempt to sell the then-remaining shares held on deposit upon the terms described in the notice of termination of ADS program as provided for in the deposit agreement, it added.

Vedanta had previously announced that the deposit agreement under which its ADSs were issued was terminated effective close of trading on NYSE on November 8, 2021.

Under the terms of the deposit agreement, holders of company's ADSs can surrender their American depositary shares to the depositary in exchange for the underlying equity shares of the company.

This requires that holders who surrender their ADSs for cancellation must have, or establish, a custodian or brokerage (demat) account in India to receive such equity shares prior to surrendering their ADSs to Citibank, N.A. for cancellation.

Establishing such custodian or brokerage (demat) account may be subject to delay as a result of operational procedures and as the opening of such account may be subject to regulatory approvals in India.

"...since ADSs have been delisted from the New York Stock Exchange effective close of trading on November 8, 2021, no over-the-counter market trading of ADSs is permitted under Indian law," it said.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel