When firm delists amid Covid-19: Independent directors face testing times

Regulator must empower them to protect interests of minority shareholders, say experts

Illustration: Binay Sinha
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Experts point out the Securities and Exchange Board of India's (Sebi’s) voluntary delisting guidelines are comprehensive | Illustration: Binay Sinha

Sudipto Dey
When shareholders of Vedanta Ltd vote on the special resolution to delist the company, not only investors but also legal experts are likely to keep a close eye on the developments in the metal and mining conglomerate. This will be the first instance of a major diversified manufacturing group initiating the delisting process during a pandemic-induced lockdown. Several other promoter groups — such as London-headquartered Diageo, which is planning to take United Spirits private —  are looking at taking this route as they go about re-building business in the pandemic-stricken environment.

While there is a regulatory process in place when

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First Published: May 24 2020 | 6:50 PM IST

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