SEBI proposes amendments to delisting regulations

Mumbai, Nov 20 : The Securities and Exchange Board of India (SEBI) has proposed to bring changes to delisting regulations in a bid to enhance disclosures to help investors to take informed investment decisions and plug gaps in the process.
The capital market regulator has proposed that the promoters or acquirers shall make the public announcement — to be Initial Public announcement — of their intention to voluntarily delist the company to all the stock exchanges on which the company is listed, on the same day, when their said intention is intimated to the company.
The IPA shall be made by the promoter through the manager to the delisting offer.
“The IPA shall inter-alia contain the information — (a) reasons for delisting; (b) compliance with the provisions of Regulations 4(1A), 4(4) and 4(5) of the Delisting Regulations,” said the SEBI proposal.
The SEBI has also proposed that upon receipt of the delisting proposal, the company shall convene the board meeting within 21 working days from the date of receipt of delisting proposal to consider and approve the delisting proposal.
The Board of Directors, while communicating their decision of granting approval of delisting, shall also disclose to the stock exchanges the merchant banker’s due diligence report and the audit report.