The Securities Appellate Tribunal, SAT in the case Schneider Electric V. Sebi observed wherein the French company, Schneider Electric President Systems Ltd has decided to rejoin national stock exchanges after withdrawing its appeal against the Securities and Exchange Board of India, SEBI.
However, the Schneider Electric President Systems Ltd through the Senior Advocate Janak Dwarkadas made an announcement that they will proceed with the listing on a stock exchange with nationwide reach. This move comes after their initial challenge against the SEBI’s 2021 order.
The bench of Justice Tarun Agarwal and the technical member, Meera Swarup have granted Schneider a six-month extension starting from July, 26, 2023 to adhere to the order of the SEBI. Thus, Schneider was listed on the Bangalore and Pune stock exchanges.
Therefore, the Company found circulars which, as per the assertion of Schneider’s wherein it is permitted them to delist from regional stock exchanges without adhering to SEBI’s delisting regulations.
The Shareholders owning around 9% of the company raised this concern with SEBI through Regstreet Law Advisors.
It has been argued by SEBI that as Schneider qualified for listing on a nationwide stock exchange, it could not relax the delisting norms.
The court proceeded to pass an order in February 2021, wherein directing Schneider to relist itself.
It has also been instructed by the SEBI that the Schneider to list its equity shares on a stock exchange with nationwide terminals.
However, the SEBI allowed Schneider to delist the company as per the SEBI delisting regulations, which require providing an exit option to the investors of the company.
Further, it has been challenged by the said company the matter in the Bombay High Court, thus, but the Court dismissed the petition wherein instructing the Schneider to pursue its remedy before SAT, the Securities Appellate Tribunal.
The Schneider appealed before SAT, but later it decided to withdraw the appeal and stated that it would comply with the SEBI, the Securities and Exchange Board of India order within the period of six months.