SEBI Declares New Delisting Norms
Sebi has notified new delisting norms under which a company could be delisted only if the promoter hikes his stake to 90 per cent or acquires at least 50 per cent through a share purchase offer giving the shareholders an exit opportunity. Sebi has also framed conditions for the bourses regarding cases of compulsory delisting and has made special provisions for delisting of small firms.
The notification said promoters could not “directly or indirectly” use the company’s funds to finance purchase of shares to facilitate an exit opportunity for the shareholders.
Other Conditions:
- A company is not allowed to delist within 3 years of issuing buy-back offer or a preferential allotment of equity.
- Promoters of the company can not seek listing for 10 years from the date of delisting
- The delisting offer should initiate within 55 working days from the date of the public announcement.
- Small companies can be delisted if shares had not been traded for one year
Comments (2)
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updated norms of sebi for required to ipo or new issue market