Stepping forward with delisting reform

A reform proposed by the Sebi offers another chance for a transaction to succeed instead of having a guillotine kill a deal because the price is unacceptably high

The Securities and Exchange Board of India (Sebi) has decided to bring a new feature in the gaming process — an acquirer seeking to acquire shares to delist a company may make a counter offer to the public shareholders if he does not like the price discovered through India’s unique reverse book building process.  

While the devil is in the detail as to how the change would actually be provided for in the regulations that actually get drafted, the announcement that Sebi’s board meeting cleared the proposition is a welcome measure. The reverse book building process entails public shareholders quoting