“There was a popular belief that we would never review the delisting regulations and that we would stay with the reverse book-building process,” said Buch while addressing a conference organised by Ficci on Thursday. “A consultation paper is already floated and Sebi has received a lot of feedback. At the next board meeting, we are taking that proposal to our board.”
In August, the regulator had suggested tweaking of the counter offer mechanism and determination of floor price for a stock being delisted.
It has proposed that the fixed price option would only be for those companies that have their shares frequently traded.
Sebi said there are adequate safeguards in place for public shareholders, such as a proposal for delisting requiring approval of the shareholders through a special resolution.
Besides, the public shareholder would have the right to not offer their shares during the tendering period, the regulator said.
Sebi suggested that the fixed price offered by the acquirer should not be lower than the floor price. A floor price is the minimum price required to be offered by the acquirer.Similarly, Buch said it was believed that Sebi is “very dogmatic about insider trading” but the regulator has initiated a relook into the same by initiating consultation. She said the Sebi management will table changes on insider trading norms before the board in December or January.
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