VEDL Vedanta Ltd (NYSE)

Could you add the following stock, please?

VEDL Vedanta Ltd (NYSE)

Thank you.

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VEDANTA has been delisted. I am unable to sell or buy.
Please help!

I think 212 will need to wait 30 days after the 8th of December to give you the cash proceeds of the sale for non converted stocks less CGT, but they’ll be able to confirm.

@B.E Are you able to shed some light on the IB/212 process. I made an assumption that no election was made on the C/A notification so that after 30 days lapse from the 8th December you should receive the cash less applicable CGT. It might be quicker if you elected cash as unable to convert to the local line.

The stock has indeed been delisted from NYSE.

Once, we have additional information on how we are going to proceed, we will let you know.

Any stock delisted will have very little liquidity or even none. As the delisted stocks will only have transactions between private investors outside the stock exchanges.

Delisting is always a risk for stocks, specially for micro/small caps and penny stocks/OTC stocks. Also large caps can be delisted if they are bought by private equity firms, or if there is merger & acquisition, or if they have a secondary listing and decide to delist from that secondary market, or even if the regulator or legislative/government decide to delist a company to due irregular matters.

Before delisting, there are news and public announcements stating that the stocks will be delisted on a pre-determinated date, and if someone want to sell before that, they will have time to sell their stocks before delisting.

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This is just my view, but IIRC the ADR needs sold off book, if not already to avoid any CGT liability if possible.

ADRs have tax advantages to holding the local Indian stock I believe as they are not subject to the 15% short term or 10% long term tax as in India(plus cess etc).

Now I see another option in the app to lent out Vedanta Share under securities lending @0.39%.

What does this mean? I would request you to please explain in layman’s language.

Sorry, I am getting restless as I have good amount of shares from this company.

That is simply what percentage of your shares T212 are effectively lending out as a source of income. It has no effect on you as you still own the shares and can buy and sell at will the whole amount

Except they can’t sell the shares as the ADRs are now delisted.

There’s a couple options still assuming the security is in ADR form still. There is 30 days to convert to the INR line from Wednesday for example. Realistically that’s the best option I think to convert and then liquidate / FX back to USD and pay investors the cash proceeds to try and avoid Indian cgt. That’s on a slim to none chance Interactive Broker actually have the right account setup to do this or 212 could piggy back from that.

Worst case should have an answer 7th January(30 days).

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Yes @Dougal1984 I’m just explaining the lending details as I have no information about the shares themselves.

Would this be a similar fate to BHP on LSE?

It was a similar event, as BHP had a dual listing of its shares in Sydney and London. BHP moved its main listing to Australia.

As a result of the move, many UK investors will be forced to sell their holdings.

It is the second corporate giant to look at abandoning a dual structure in London in the past five years — Unilever (UNA.AS) looked at to simplifying its own structure and opting for an Amsterdam listing, prompting speculation about Brexit flight.

Those plans were ultimately scrapped, however, after proposals were rejected by the shareholders.

Hello Dougal. Thanks for explaining. Is there any method to “convert and then liquidate” as you suggested?

You actually sound so similar to what Vedanta is suggesting.
I could find the attached document on their website explaining either to convert or to cancel.

This sounds so complicated jargon to me. Do they really mean nothing can be done without having DR-Type DEMAT account in India? Can T212 do something to help in this regard?

Actual link to document on Vedanta Website

That’s it I doubt IB hence 212 would support DMAT. It’s taken the industry by surprise as it’s relatively new (India is a pain in the hoop).

This will be why 212 appear to be quiet for investors that did not sell their holding prior to delisting. The market is a bit confused about this new account requirement.

If I were to guess, there may be a CGT charge that ultimately we want to leverage of the bigger IB book of business to push back on anything less than cash value of the underlying.

I get notification for every small though useless announcement, but this big announcement was somehow missed by 212. I am also very new to all this. Moreover, delisting by Vedanta failed in 2020 once.

Anyways, do you think that all the investment will be lost or some buyback may be announced?

A bit of information about the Indian stock market (and including the Vedanta original stock) :

India National Stock Exchange of India (NSE)***

*** Stocks on the NSE are only available to Indian residents.

https://www.interactivebrokers.co.uk/en/index.php?f=41307&p=asia_stk

Note: Be careful with emerging markets stock markets, like India or China. As they have foreigner investment limitations and restrictions. And they do strict capital flows control. Also their currencies could have high volatility (especially INR, CNY not so much as it is restricted only to mainland China).

Thnx RLX. Can a person transfer shares to someone else’s DMAT account in India? Or it must be hold by self? Will T212 help in this?

I don’t know how many factors one has to take care of. But yes, one has to be careful.
Change in INR against $ for past 1 yr is less than 2%, against CNY is 3%, against EUR is 7%.

Vedanta is actually $12 Billion company. They delisted from US and got listed in India. I don’t know how I missed this news. Caught me by surprise.