SEBI to consider permitting delisting via fixed price

SEBI will consider permitting the delisting of companies via fixed price instead of the reverse book-building procedure, Chairperson Madhabi Puri Buch said on Monday. The Securities and Exchange Board of India will issue a discussion paper on the subject by December, the regulator said.

In the reverse book-building process to delist a company from stock exchanges, shareholders place offers for the price at which they are willing to sell securities back to the promoters, or large shareholders who can influence company policy.

A delisting price is then computed based on these offers.

SEBI is now considering permitting a promoter to place a delisting offer at a fixed price for shareholders to consider.

Separately, SEBI also intends to strengthen rules for corporate disclosures related to insider trading regulations.

Commenting on a pending decision on a revamp of mutual fund fee structures, Buch said that feedback from the industry is under review.