Oracle Plc is considering delisting plans for its Indian arm Oracle Financial Services. CNBC-TV18 learns from sources that the senior management have already met to discuss the contours of the deal.
However, the move is yet to be cleared by the Oracle global board. Sources say the timeline will be decided by the board.
Oracle currently holds 80.36% in its Indian entity, which is yet to adhere to the 25% public shareholding norm.
The Indian units of various multi-national companies (MNCs) have public shareholding of less than 25% and many of them have been resisting to dilute the promoter holdings to below 75%, for which Sebi has set a deadline of June 2013.
Oracle has informed the US Securities and Exchange Commission that is it unable to exert full control on its Indian arm. The statement to the SEC is part of its 10K filing in June, 2012.
Besides that, Oracle says it is facing many additional risks and local securities regulations.
Oracle declined to comment on the story when contacted by CNBC-TV18.
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