Latest news with #DelistingofEquityShares
The Print
11 hours ago
- Business
- The Print
Sebi to introduce special measures to facilitate voluntary delisting of certain PSUs
Under current rules, delisting is successful if promoter shareholding reaches 90 per cent. Moreover, the floor price for delisting is calculated using several pricing metrics such as 60-day average price and highest price in the last 26 weeks. Among the measures include relaxations from requirement of two-third threshold for approving delisting by public shareholders and in the mode of computation of floor price. Mumbai, Jun 18 (PTI) Markets regulator Sebi on Wednesday decided to introduce special measures to facilitate voluntary delisting of public sector undertakings, where the government owns 90 per cent or more of shares. These rules can make delisting costly for PSUs due to high market prices despite low book values or weak financials. 'In certain Public Sector Undertakings (PSUs) with minimal public float, the shares are traded frequently at prices which are not commensurate with operations, net worth, profitability and other financial parameters of the company. If such PSUs are to undertake delisting, the current norm of 60 days' volume weighted average market price makes it financially burdensome to delist such companies,' Sebi said after the conclusion of its board meeting. In view of these drawbacks and to facilitate delisting of such PSUs, the board approved amendment to Sebi (Delisting of Equity Shares) norms for introduction of a special measures for PSUs (other than banks, non-banking financial companies (NBFCs) and insurance companies). Those under the ambit of any financial sector regulator are to undertake voluntary delisting through fixed price delisting process when the shareholding of the Government of India as a promoter equals or exceeds 90 per cent. Further, these PSUs can delist without meeting minimum public shareholding norms. Moreover, delisting can happen at a fixed price — at least 15 per cent premium over the floor price — regardless of trading frequency. The regulator decided to abolish the requirement for two-thirds public shareholder approval in cases where the promoter plus PSU holding is already 90 per cent. Regarding handling unclaimed money, Sebi said that such money should be transferred to the stock exchange for 7 years and then moved to the Investor Education and Protection Fund (IEPF) or the regulator's IPEF. Further, investors can claim the amount during this period. PTI AA SP HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
19 hours ago
- Business
- Time of India
Sebi to introduce special measures to facilitate voluntary delisting of certain PSUs
Markets regulator Sebi on Wednesday decided to introduce special measures to facilitate voluntary delisting of public sector undertakings, where the government owns 90% or more of shares. Among the measures include relaxations from requirement of two-third threshold for approving delisting by public shareholders and in the mode of computation of floor price. Under current rules, delisting is successful if promoter shareholding reaches 90%. Moreover, the floor price for delisting is calculated using several pricing metrics such as 60-day average price and highest price in the last 26 weeks. These rules can make delisting costly for PSUs due to high market prices despite low book values or weak financials. "In certain Public Sector Undertakings (PSUs) with minimal public float, the shares are traded frequently at prices which are not commensurate with operations, net worth, profitability and other financial parameters of the company. If such PSUs are to undertake delisting, the current norm of 60 days' volume weighted average market price makes it financially burdensome to delist such companies," Sebi said after the conclusion of its board meeting. Live Events In view of these drawbacks and to facilitate delisting of such PSUs, the board approved amendment to Sebi (Delisting of Equity Shares) norms for introduction of a special measures for PSUs (other than banks, non-banking financial companies (NBFCs) and insurance companies). Those under the ambit of any financial sector regulator are to undertake voluntary delisting through fixed price delisting process when the shareholding of the Government of India as a promoter equals or exceeds 90 per cent. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Further, these PSUs can delist without meeting minimum public shareholding norms. Moreover, delisting can happen at a fixed price -- at least 15 per cent premium over the floor price -- regardless of trading frequency. The regulator decided to abolish the requirement for two-thirds public shareholder approval in cases where the promoter plus PSU holding is already 90 per cent. Regarding handling unclaimed money, Sebi said that such money should be transferred to the stock exchange for 7 years and then moved to the Investor Education and Protection Fund (IEPF) or the regulator's IPEF. Further, investors can claim the amount during this period.
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Business Standard
20 hours ago
- Business
- Business Standard
Sebi eases ESOP rules for startup founders ahead of IPO plans
In a major relief to startup founders planning public listings, the Securities and Exchange Board of India (Sebi) on Wednesday approved changes to allow them to retain employee stock options (ESOPs) granted at least one year prior to filing a draft red herring prospectus (DRHP). The move addresses a long-standing concern under existing rules, which bar promoters from holding share-based benefits like ESOPs and require them to liquidate such holdings before the IPO — a provision that has particularly impacted founders classified as promoters at the DRHP stage. The decision follows the markets regulator's board meeting earlier in the day. In a press briefing after the meeting, Sebi Chairperson Tuhin Kanta Pandey also said that they have approved amendments to the Sebi (Delisting of Equity Shares) Regulations, 2021 to introduce special provisions enabling voluntary delisting of public sector undertakings (PSUs) through a fixed price mechanism. The new framework will apply in cases where the combined shareholding of the Government of India and other PSUs as promoters equals or exceeds 90 per cent. "Under the new provisions, eligible PSUs can delist through a fixed price process, with the offer price set at a minimum 15 per cent premium over the floor price, which will be determined by registered valuers. Additionally, the requirement for approval by two-thirds of public shareholders has been waived, given the extremely low public float in such cases. Once delisted, these PSUs may continue operating as unlisted entities, be struck off, or be wound up," Pandey said. "If a delisted PSU opts for voluntary strike-off, it must do so within 30 days after one year from the date of delisting. There are only 5 such PSUs where promoter holding is more than 90 percent," he added
