Tata Motors on January 13 filed "Form 25" with the US Securities and Exchange Commission (SEC) for the delisting of depository share receipts from the New York Stock Exchange (NYSE), a regulatory filing stated.
Form 25 is a document filed with the American market regulator to delist securities under the Securities Exchange Act of 1934.
The filing of Form 25 comes around two months after the global automobile manufacturer said it was terminating its American Depository Share (ADS) programme, roughly around 18 years since they first started trading.
ADRs, notably, offer US investors a means to gain investment exposure to non-US stocks.
"Since the company’s ADS were issued in 2004, it has witnessed a considerable increase in liquidity and foreign shareholder participation in the equity stock markets in India. The company has considered the consistent drop in the number of ADS outstanding as a percentage of its outstanding ordinary shares. Therefore, the rationale for ADS listing in the United States has significantly diminished,” Tata Motors said in November.
“This will help simplify financial reporting requirements and reduce administrative costs,” it had stated.
Holders of ADSs were encouraged to present their ADSs to Citibank, NA for cancellation before the cut-off time and delivery of the underlying ordinary shares of the company.
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