Satyam off NYSE, starts OTC innings

Oct 14, 2010 |

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Oct. 14: IT major 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 said in a filing to the Bombay Stock Exchange. In September, 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.

ADR holders will retain the right to redeem their Satyam ADRs and receive the underlying equity shares, which will continue to be listed on the India stock exchanges.

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