Indian IT firm Mahindra Satyam's American Depository Receipts (ADR) were delisted from the New York Stock Exchange (NYSE) on Thursday after the company expressed its inability to comply with US securities rules.
The company's ADRs have been delisted from the NYSE and will now only be available for trade in the over-the-counter (OTC) market, Mahindra Satyam (formerly known as Satyam Computer) said in a filing to the Bombay Stock Exchange.
Last month, the company had announced plans to delist its ADRs traded on the New York Stock Exchange as it was unable to comply with market guidelines for filing restated US-GAAP financial statements for the period ended March 31, 2009, before October 15, the deadline given by US regulator SEC.
The new ticker symbol for the American Depository Receipts of the company is 'SAYCY'. ADRs are shares issued by non-American companies to raise money in the US. Over-the-counter (OTC) trading involves direct transactions between two parties in financial instruments such as stocks, bonds, commodities or derivatives.
Last month, the company had announced plans to delist its ADRs from the New York Stock Exchange as it was unable to comply with US market guidelines. ADR holders will retain the right to redeem their Mahindra Satyam ADRs and receive the underlying equity shares, which will continue to be listed on the India stock exchanges.
"Although we are moving our ADRs to the OTC market and the ticker symbol has changed, nothing will change with the ADRs themselves."
"If you own the ADRs now, you will continue to own them. Your broker can execute trades of our ADRs in the OTC market where they will be classified in the Pink Sheets current information category, just like the ADRs of many other well- known international companies," Mahindra Satyam Chairman Vineet Nayyar said.
The company is also in the process of restating its prior US GAAP financial statements. The company had said it would not be able to file restated US-GAAP financial statements for the period ended March 31, 2009, on or prior to October 15, the deadline fixed by US regulator SEC.
On September 29, Satyam Computer reported a loss of Rs 125 crore (Rs 1.25 billion) for the 2009-10 financial year, ending two years of mystery over its financial health following founder B Ramalinga Raju's shocking confession of perpetrating an accounting scam to the tune of nearly Rs 7,800 crore (Rs 78 billion).
Shares of Mahindra Satyam closed at Rs 86.55 on the BSE, up 0.76 per cent from the previous close.
