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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2024

25-Sep-2024 | No. SEBI/LAD-NRO/GN/2024/206

SEBI has issued the Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2024, effective from 25th September 2024.

Key highlights of the amendment:

a. Introduction of the term fixed delisting price: This is the price offered by an acquirer for delisting shares, while floor price refers to the minimum price in delisting proposals.

b. Escrow account requirement: Acquirers are required to deposit 25% of the total consideration in an interest-bearing escrow account upon obtaining shareholder approval. The calculation of the total consideration will vary depending on the chosen delisting method.

c. Bidding period: The bidding period for delisting offers must commence promptly, and acquirers are obligated to announce the results within two days of bidding closure.

d. Floor price regulations: New rules have been introduced for calculating floor prices, ensuring that they reflect the highest market metrics.

e. Fixed price delisting process: If delisting occurs through a fixed price process, the offered price must be at least 15% higher than the calculated floor price. Acquirers must accept shares if they attain a 90% post-offer shareholding.

Kindly refer to the attached document for more information.

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