October 3, 2022

Bengaluru: Nasdaq-listed digital content material and e-commerce market Rediff.com India Ltd stated on Wednesday it utilized to the US Securities and Change Fee (SEC) to delist from the inventory trade.

“On 3 February 2016, the corporate obtained discover from Nasdaq that it has did not fulfill the minimal bid value requirement of $1.00 per share continued itemizing normal,” Rediff stated in a communication to Nasdaq.

“The corporate believes that it could be troublesome and costly to attempt to regain compliance with the Nasdaq continued itemizing necessities, and subsequently has decided to voluntarily delist from Nasdaq,” it added within the communication, which was launched to the media.

Rediff stated it doesn’t intend to rearrange for a list, registration or citation on one other nationwide securities trade or citation medium at current.

“The choice by Rediff’s Board of Administrators to deregister and go away the Nasdaq Capital Market was made after cautious consideration of the benefits and drawbacks of being a SEC reporting firm together with the excessive prices and calls for on administration’s time arising from compliance with the various SEC and Sarbanes-Oxley necessities… we’re continuously searching for methods to cut back prices and enhance shareholder worth as we proceed to focus our efforts on rising the core enterprise…” stated Rediff chief government officer Ajit Balakrishnan in an announcement.

The Sarbanes-Oxley Act, 2002, mandated strict reforms to enhance monetary disclosures by corporations to forestall fraud.

Rediff began in 1996, and rediff.com was the primary area title to be registered in India. Its portal now gives an e-commerce market, leisure and information content material and rediffmail, an e-mail service.

“Over a time period Rediff’s market cap has shrunk fairly a bit. It’s fairly costly should you’re not a big firm to be listed within the US,” stated Harish H.V., companion, Grant Thornton India LLP.

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