Sebi to take proposal for new delisting rules to board soon

Regulator’s consultation paper had mentioned alternatives, including fixed price for delisting

- Priyanka Gawande

The Securities and Exchange Board of India (Sebi) will propose a review of its regulations for delisting stocks at its next board meeting, 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," Buch said while addressing Ficci’s Capital Markets Conference, or CAPAM 2023, in Mumbai on Thursday.

A Sebi sub-group had considered providing some alternatives to the reverse book-building process, including an option to delist shares at a fixed price. Its consultation paper floated in August 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."