SEBI Amends Delisting Norms | Acquirers Can Use the ‘Fixed Price Process’ for Frequently Traded Shares
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- Last Updated on 27 September, 2024
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Notification No. SEBI/LAD-NRO/GN/2024/206., Dated 25.09.2024
Following the previously issued consultation paper, SEBI has now notified amendments to the SEBI (Delisting of Equity Shares) Regulations, 2021. Under the amended norms, the acquirer can now delist through ‘fixed price process’ if the company’s shares are frequently traded. Further, the acquirer must offer a delisting price at least 15% above the floor price.
The acquirer shall be bound to accept the equity shares tendered or offered in the delisting offer, if the post-offer shareholding of the acquirer along with the shares tendered by the public shareholders reaches 90 percent at the fixed delisting price, offered by the acquirer.
SEBI has also prescribed the method for calculating the floor price in both the reverse book building and fixed price process. Further, SEBI has introduced special provisions for delisting of investment holding company pursuant to a scheme of arrangement.
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