Sebi eases the Delisting Regulations

The Securities and Exchange Board of India has made the delisting norms easier by bringing out changes such as the promoters  either will have to ensure that at least 25 per cent of minority shareholders participate in such a process or can demonstrate that the entire 100 per cent investors have been approached to ensure that a good percentage of the minority shareholders participate in the delisting process.

Also, in case the acquirer or the merchant banker sends the letter of offer to all shareholders and provide a detailed account regarding the status of delivery of offer letter, the same would be considered as a deemed compliance with the provision the Delisting Regulations,

The regulator further has listed out that in case the acquirer and merchant banker is “unable to deliver offer letter to all shareholders by modes other than speed post or registered post, efforts should be made by them to deliver the letter of offer. In that case, a detailed account regarding the status of delivery of letter of offer, which shall also be considered as a deemed compliance.

At times the delisting process takes a lot of time which extends to more than a year, so the timeline for delisting to take effect has also been reduced to approximately around 76 days from 137 days.

Thus now it will become more easy for the companies who opt for delisting in terms of complying with the more simple and easy delisting regulations.

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