SEBI Eases Delisting Norms for Public Sector Units
SEBI announced measures to simplify the voluntary delisting process for Public Sector Undertakings (PSUs) with a 90% government share. Changes include removal of the two-thirds approval requirement and revisions in floor price calculations, easing financial burdens on PSUs with minimal public float.
- Country:
- India
The Securities and Exchange Board of India (SEBI) has unveiled new steps to streamline the delisting process for Public Sector Undertakings (PSUs) with substantial government ownership. This move, announced on Wednesday, aims to address the financial strains that make delisting costly for PSUs.
One of the key changes is removing the requirement for a two-thirds public shareholder approval for delisting. SEBI will also alter how the floor price is calculated, making it easier and less financially demanding for PSUs to delist, especially those with 90% government shareholding.
The revised guidelines allow delisting at a fixed price, which must be at least 15% above the floor price, bypassing the need for frequent trading valuations. The regulator also streamlined procedures for handling unclaimed money, ensuring better financial management in line with new delisting norms.
(With inputs from agencies.)
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- SEBI
- delisting
- PSU
- government
- shares
- floor price
- regulation
- public sector
- investors
- financial
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