Sebi Proposes Streamlined Delisting for High-Government Shareholding PSUs
Sebi has proposed a separate mechanism for the voluntary delisting of PSUs where government holdings exceed 90%. The plan aims to overcome costly delisting under current rules, enable delisting of financially burdensome PSUs, and simplify procedures, including fixed pricing and less stringent public shareholder approval requirements.
- Country:
- India
The Securities and Exchange Board of India (Sebi) has suggested new guidelines to simplify the delisting process for Public Sector Undertakings (PSUs), especially where the government holds a majority stake of over 90%.
Currently, the rules make delisting costly due to high market prices compared to book values. The proposed plan seeks to enable these PSUs to delist without adhering to minimum public shareholding norms and sets a fixed delisting price at a premium over the floor price.
The new measures also waive the need for two-thirds public shareholder approval when government holdings reach 90%. Public comments on these proposals are invited until May 26.
(With inputs from agencies.)
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