OVERHAULING DELISTING REGIME
Indian Economy & Market|August 2023
Despite the changes made to the SEBI Takeover Regulations in 2021, there is still a pressing need to update the current delisting process. Many delisting deals fail due to outdated requirements that are still mandatory. A smooth listing and delisting process is essential for maintaining the stability and integrity of the Indian securities market. Also there are valid commercial reasons why a company should be delisted, and it is not in the best interest of public shareholders to force companies to remain listed, especially if there is little to no trading in their securities or if their business no longer justifies continued listing. Despite the changes made to the SEBI Takeover Regulations in 2021, there is still a pressing need to update the current delisting process. Many delisting deals fail due to outdated requirements that are still mandatory. Now, the SEBI will release a discussion paper on this subject by December 2023, seeking comments and inputs from stakeholders and market participants
Shivanand Pandit
OVERHAULING DELISTING REGIME

TO control the manipulation of shares of a company that has chosen a delisting option from the stock exchanges, the capital market regulator, the Securities Exchange Board of India (SEBI), is appraising delisting rules and regulations for listed companies. The chairperson of the SEBI, Madhabi Puri Buch declared on July 24, 2023, that the governing body will release a discussion paper on this subject by December 2023, seeking comments and inputs from stakeholders and market participants.

Delisting refers to eliminating the securities of a listed company from a stock exchange. Once delisted, the securities of that company can no longer be traded on the stock exchange. Delisting can be either voluntary or compulsory. In voluntary delisting, a company decides to eliminate its securities from the stock exchange. In compulsory delisting, they are eliminated as a punitive measure for the company not making submissions or complying with conditions laid out in the listing agreement within the stipulated timeframes. If a company wants to delist its securities, it must buy back 90% of the total issued shares.

この記事は Indian Economy & Market の August 2023 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。

この記事は Indian Economy & Market の August 2023 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。

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