Delisting may create governance issues in companies, warns Fitch

Corporates can also simplify or reorganise complex group structures without the interference of minority shareholders through such moves, the agency said

Concentration of ownership after delisting may create governance and key-man issues at the companies adopting such strategies, ratings agency Fitch warned on Thursday.

Corporates can also simplify or reorganise complex group structures without the interference of minority shareholders through such moves, the agency noted.

Anil Agarwal-led Vedanta Resources and HT Global IT Solutions Holdings have announced delisting of their Indian subsidiaries Vedanta and Hexaware Technologies, respectively - amid a slump in share prices and easing of delisting norms in the recent past, while Gautam Adani-led Adani Power is also mulling a similar move of promoter buying out shares.

"A highly