Sebi's proposed delisting norms to boost re-listings, say experts

Companies particularly in IT space could look re-enter the market given attractive valuations for stocks in the sector

The Securities and Exchange Board of India (Sebi)'s proposed changes to the delisting framework could encourage companies to re-list, say experts. The market regulator has proposed to reduce the cooling off period between delisting and relisting from five years to three years.

“Sebi has acknowledged that a few delisting can take place to pursue strategic initiatives and accordingly have reduced the relisting period to three years, which will encourage relisting for some of the delisted companies,” said Ravi Dubey, Partner, IndusLaw.

Market observers said companies particularly in the information technology (IT) space could look re-enter the market given the attractive