Time extended to surrender Vedanta’s American depositary shares

VEDANTA Ltd has said it has decided to extend the time for surrendering the company’s American depositary shares (ADSs) by more than a month.

Holders can surrender their ADSs in exchange for underlying equity shares of the company till January 10 next year. The previous deadline was December 8.

"In order to provide more time to the ADS holders, the company has decided to extend the date...," it said in a filing on Monday (6).

Vedanta had previously announced that the deposit agreement under which its ADSs were issued was terminated effective from November 8.

Under the terms of the deposit agreement, holders of the company's ADSs can surrender their American depositary shares to the depositary in exchange for the underlying equity shares of the company.

This requires that holders who surrender their ADSs for cancellation must have, or establish, a custodian or brokerage (demat) account in India to receive such equity shares prior to surrendering their ADSs to Citibank, NA for cancellation.

Establishing such a custodian or brokerage (demat) account may be subject to delay as a result of operational procedures and as the opening of such an account may be subject to regulatory approvals in India.

"...Since ADSs have been delisted from the New York Stock Exchange effective close of trading on November 8, 2021, no over-the-counter market trading of ADSs is permitted under Indian law," it said.

(PTI)