Just when the going was great for promoter shareholders wanting to delist shares of companies from the recognized stock exchanges, SEBI has notified new regulations for delisting of equity shares of listed companies with effect from June 10, 2009. These regulations replace the SEBI (Delisting of Securities) Guidelines, 2003, as far as delisting of equity shares are concerned.
To facilitate the process of stock exchanges delisting illiquid scrips, the government today allowed the bourses to deregister any firm that has incurred losses for three consecutive years and has negative networth, subject to certain conditions.
Market regulator Securities and Exchange Board of India (Sebi) has notified new delisting norms, under which a company could be delisted only if promoter hikes its stake to 90 per cent or acquires at least 50 per cent through a share purchase offer aimed at giving the shareholders an exit opportunity.
The Securities and Exchange Board of India is likely to announce changes to the delisting guidelines after its monthly board meeting scheduled later next month.
The Securities and Exchange Board of Indias (Sebi) delisting guidelines need to be synchronised and made part of the takeover regulations, a working paper by two Sebi researchers concludes.
The Securities and Exchange Board of India (Sebi) is reviewing the delisting guidelines it had issued in 2003. The Sebi move is prompted by the reactions of companies which are said to be very unhappy
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