It is said that the Securities and Exchange Board of India is all set to take proposals for the regulations for delisting stocks. The chairperson of SEBI reportedly will present a proposal for the review of its regulation for new delisting rules to the board soon at the next board meeting. Madhabi Puri, the chairperson of the Securities and Exchange Board of India added they will propose a review of its proposal for delisting stocks at the next board meeting. However, SEBI was confident that they would never review the new delisting rules but a consultation proposal has been floated and received a lot of feedback. We have a lot more to share with you in this article about the Securities and Exchange Board of India’s proposal for delisting stocks. Kindly stick with this page and go through it till the end.
SEBI chairperson Madhabi Puri Buch said, “There was a popular belief that we would never review the delisting regulations and that we would stay with the reverse book-building process. A consultation paper has already been floated, and Sebi has received a lot of feedback. At the next board meeting, we are taking that proposal to our board,” at the Capital Markets Conference of FICCI or CAPAM 2023 in Mumbai, on Thursday, November 16, 2023. Shift to the following section and learn more.
Earlier, a sub-group of SEBi considered providing alternatives to the reverse book-building process including an option to delist stocks fixed at a price. The consultation paper of SEBI for the new delisting rule floated in August this year, said, “The fixed price route will give acquirers and shareholders certainty concerning the pricing of the delisting offer. This would help shareholders decide upfront whether to participate in the delisting process or not at the given price.”
According to the existing regulations, the exit price is decided when the cumulative shareholding of the promoter reaches 90 percent of the total issued shares under a reverse book-building instrument, along with the shares tendered by public shareholders. Shareholders are asked to submit offers at prices above or equal to the floor price during reverse book-building. The buyback price is decided after the offer closing period based on the offers collected. This process ensures fair price discovery for the buyback. However, SEBI found that some constituents used this opportunity to manipulate prices. Stay tuned to this website for more details.