InvestorQ : What has triggered this decision by Tata Motors to delist its ADS from the New York Stock Exchange?
vidhya Laxmi made post

What has triggered this decision by Tata Motors to delist its ADS from the New York Stock Exchange?

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sarah Leo answered.
2 weeks ago
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There are several reasons that triggered this decision to delist the ADS from the NYSE. Broadly, there are 3 triggers that I can think of although we must await a detailed statement from Tata Motors. Firstly, today Indian markets are a lot more liquid and broad-based compared to 2004 and the F&O segment has added to breadth of the Indian market. Secondly, FPIs are more comfortable buying Tata Motor stock in India through the FII route, than going through the ADS route. So ADS listing, is not adding too much value. Lastly, the JLR deal has given Tata Motors a global profile and it no longer needs an introduction.

We must not forget that ADS calls for stringent compliance and that has a huge cost. The ADS market remains one of the most regulated and compliance driven markets. The heavy compliance is not adding too much value to Tata Motors other than the cost. At this juncture, taking a cue from Chinese companies exiting the US markets, Tata Motors is focusing on reducing its global compliance costs. In a sense, the Indian stock markets have arrived on the global stage and the Tata Motors ADS decision reflects that. Perhaps, it is possible that other stocks too may follow the example of Tata Motors.

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