In a noteworthy development, Schneider Electric President Systems Limited decided to withdraw its appeal in the Securities Appellate Tribunal (SAT) against an order issued by the market regulator Securities and Exchange Board of India (SEBI).
The SEBI order, dated January 19, 2021, mandated Schneider Electric President Systems Limited, a French company, to take one of two actions: either re-list on a nationwide stock exchange or offer an exit opportunity to its public shareholders through the delisting process. This directive was a result of complaints filed by a group of minority shareholders, represented by Regstreet Law Advisors, who collectively held nine per cent of the company's shares.
SEBI had issued multiple circulars to companies listed on regional stock exchanges, urging them to take one of two actions following the de-recognition of such regional stock exchanges. The options provided were either to re-list on a nationwide stock exchange (BSE/NSE/MSEI) or to delist in case they were unable to get listed on a nationwide stock exchange.
Schneider, which was listed on both the Pune Stock Exchange and Bangalore Stock Exchange, interpreted the SEBI circulars to mean that a company on a de-recognised stock exchange could delist without making efforts to get listed on a nationwide stock exchange. However, SEBI argued that since the company was already eligible for listing on a nationwide stock exchange, it could not take advantage of the relaxed delisting norms prescribed in the SEBI circulars.
In February 2021, Schneider initially approached the Bombay High Court, seeking directions to set aside the SEBI order. However, the Bombay High Court dismissed the writ petition, stating that any challenge against a SEBI order should be made before the Securities Appellate Tribunal (SAT).
Subsequently, Schneider Electric President Systems Limited proceeded to appeal before the Securities Appellate Tribunal (SAT). However, the company later chose to withdraw its appeal and eventually agreed to comply with the SEBI order, committing to re-list the company as directed.
Advocate Somasekhar Sundaresan, along with Sumit Agrawal, Amit Agrawal, Rushin Kapadia, Radhika Yadav, Pratham Darad, and Tarun Toprani, and assisted by Regstreet Law Advisors, represented the minority shareholders of Schneider Electric President Systems Limited in the legal proceedings.
Senior Advocate Janak Dwarkadas, along with Kunal Dwarkadas, Anusha Jegadeesh, Trisha Sarkar, and Ambareen Mujawar, assisted by AZB & Partners, represented Schneider Electric President Systems Limited in the legal proceedings.
Senior Advocate Mustafa Doctor, along with Manish Chhangani, Samreen Fatima, Sumit Yadav, and Abhay Chauhan, assisted by The Law Point, represented the Securities and Exchange Board of India (SEBI) in the legal proceedings.