SEBI Review On Delisting Norms

28 Jul 2023

Context: 

SEBI is reviewing delisting regulations for listed companies to prevent share manipulation in companies opting for delisting.

Delisting of Securities:

  • Delisting means removing a listed company’s securities from a stock exchange.
  • It can be voluntary (by the company) or compulsory (by the exchange as a penalty).
  • For voluntary delisting, the company must buy back 90% of the issued shares.

Reverse Book-Building Process:

  • The current process for delisting uses reverse book-building for price discovery.
  • In this process, offers are collected from shareholders at various prices, determining the buyback price after the offer period.
  • Issue with Reverse Book-Building:
    • Concerns have been raised about price manipulation during the delisting process.
    • Some entities accumulate shares to anticipate higher delisting prices, leading to unfair practices.

SEBI’s Review:

  • SEBI is reviewing delisting regulations to address the issues raised with the current process.
  • The regulator is considering a fixed price method as an alternative option for delisting companies.
    • In a Fixed price offer, the company specifies a fixed price at which it is willing to buy back shares from the public shareholders who wish to sell their shares.
  • SEBI received recommendations from a committee headed by Keki Mistry and will seek stakeholder comments before finalizing changes.

Benefit of Fixed Price Method:

  • Benefits depend on the specific methodology SEBI adopts for arriving at the fixed price.
  • A holistic review will ensure a smoother process for promoters and shareholders.

News Source: The Indian Express

Archive Calendar

Mon Tue Wed Thu Fri Sat Sun
 123
45678910
11121314151617
18192021222324
25262728293031

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

Know about Physics Wallah

Physics Wallah is an Indian online education platform, that provides accessible & comprehensive learning experiences to students of classes 6 to 12 and those preparing for JEE and NEET exams. We also provide extensive NCERT solutions, sample papers, NEET, JEE Mains, BITSAT previous year papers, which makes us a one-stop solution for all resources. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.

We Stand Out because

We successfully provide students with intensive courses by India's qualified & experienced faculties. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.

Our Key Focus Areas

Physics Wallah’s main focus is to create accessible learning experiences for students all over India. With courses like Lakshya, Udaan, Arjuna & many others, we have been able to provide a ready solution for lakhs of aspirants. From providing Chemistry, Maths, Physics formulae to giving e-books of eminent authors, PW aims to provide reliable solutions for student prep.

What Makes Us Different

Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others.

Aiming for UPSC?

Download Our App

      
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.