CLOTHING retailer Monsoon plans to delist from the main London Stock Market after the number of its shares in public hands fell below permitted levels.

Monsoon said it had applied to cancel its official listing and to have its shares admitted to the Alternative Investment Market (Aim).

The move comes after the company's publicly held ordinary shares fell below the minimum level of 25 per cent required by Stock Market rules.

Trusts controlled by Monsoon's chairman Peter Simon and his family have increased their shareholding in the group since July by 2.8 per cent, after selling options to buy shares.

That has left them with a 75.5 per cent shareholding - just above the 75 per cent maximum allowed for private shareholders in a group with a full Stock Market listing.

Monsoon said a move to Aim would bring it back in line with the rules and would reduce its costs by simplifying administrative demands.