The reforms had been accredited within the 210th Sebi board assembly and apply to PSUs—excluding banks, NBFCs, and insurance coverage corporations—the place the Authorities of India or different PSUs maintain not less than 90% of the full shareholding.
The amended Sebi delisting rules will permit eligible PSUs to delist via a hard and fast value mechanism. This route does away with the present requirement of acquiring a two-thirds majority approval from public shareholders. The brand new framework goals to handle challenges confronted by PSUs with a really low public float, the place market costs usually don’t replicate their true monetary efficiency or worth.
Underneath the brand new guidelines, the delisting value have to be not less than 15% above the ground value. The ground value, in flip, have to be the very best among the many volume-weighted common value over the previous 52 weeks, the very best acquisition value up to now 26 weeks, or a valuation decided by two unbiased registered valuers.
To guard residual public shareholders, Sebi has additionally laid out a mechanism for unclaimed funds. If any eligible PSU goes for voluntary strike-off inside 13 months of delisting, the cash as a consequence of non-tendering shareholders can be transferred to a chosen account for seven years, after which it can transfer to the Investor Training and Safety Fund (IEPF) or SEBI’s Investor Safety and Training Fund (IPEF). Traders can nonetheless declare their dues from these funds after the switch.
Additionally Learn: Sebi board assembly: Regulator approves PSU delisting, IPO reforms, dematerialisation of Securities. 10 key takeawaysThese proposals had been finalised after a public session course of in Might 2025 and inputs from Sebi’s Major Markets Advisory Committee. The transfer is anticipated to make delisting simpler, sooner, and more cost effective for qualifying PSUs.
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t signify the views of Financial Instances)
