Internet services company Tata Communications yesterday said it will terminate its American Depository Shares from the US as well as the reporting obligations to market regulator Securities and Exchange Commission (SEC). Also Read - Budget 2018: Here is what the tech sector and startups are expecting from Government of India
In a BSE filing, it announced “its intention to terminate registration of its ADSs, as evidenced by American Depositary Receipts under Section 12(g) of the US Securities Exchange Act of 1934, as amended and to terminate its reporting obligations with the US SEC”. For this purpose, the company intends to file with the SEC a Form 15F today (June 26, 2014), it added. The firm, part of the over $100 billion Tata Group, had in June last year announced plans to delist its ADS from the New York Stock Exchange. Tata Communications was listed on the NYSE on August 15, 2000. Also Read - Tech spending in India to grow by 12% in 2018
This is further to the company’s announcement on June 7, 2013 confirming the delisting of ADS from NYSE effective from the close of business on that day, the filing said. It added: “Company expects that this termination of registration will become effective 90 days after its filing with the SEC. As a result of this filing, the company’s reporting obligations with the SEC, including its obligation to file annual reports on Form 20-F and reports on Form 6-K, will be suspended immediately.” Also Read - Alibaba to offer cloud services to Indian enterprises with Mumbai data center
According to SEC, stocks of most foreign companies that trade in the US markets are traded as American Depositary Receipts (ADRs). US depositary banks issue these stocks. Each ADR represents one or more shares of foreign stock or a fraction of a share. Tata Communications has one of the world’s largest submarine cable networks and has a Tier-1 IP network with connectivity to more than 200 countries and territories. The company’s scrip closed at Rs 375.80, down 1.33 percent, on the BSE.