Sebi Streamlines PSU Delisting Process for State-Owned Entities
Sebi has implemented new guidelines for the voluntary delisting of Public Sector Undertakings (PSUs) where the government holds 90% or more. The measures include easing the two-thirds public shareholder approval and calculating the floor price with relaxed criteria. The adjustments aim to facilitate efficient exits for state-controlled firms.
- Country:
- India
The Securities and Exchange Board of India (Sebi) has announced new measures to streamline the voluntary delisting process for Public Sector Undertakings (PSUs) where the government owns a 90% or more stake. These measures aim to simplify the exit strategy for state-controlled entities.
The changes include waiving the requirement for two-thirds public shareholder approval for delisting and providing flexibility in calculating the floor price. The delisting can now occur at a fixed price with at least a 15% premium over the floor price, regardless of how frequently the stock is traded.
Sebi's notification specifies that these provisions apply to PSUs, excluding banks, NBFCs, and insurance companies. The floor price will be calculated by the highest of three metrics: the volume-weighted average price of the last 52 weeks, the highest price in the last 26 weeks, or a joint valuation by two registered valuers. The new rules are part of Sebi's efforts to simplify procedures and encourage efficient market operations.
(With inputs from agencies.)
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