Board meeting of market regulator, SEBI approved amendments in SEBI (Delisting of Equity Shares) Regulations, 2009. Amendments now require the promoter/acquirer to disclose their intention to delist the company by making an initial public announcement. The Committee of Independent Directors will be required to provide their reasoned recommendations on the proposal for delisting.
Further, timelines for completion of various activities forming part of the delisting process have been introduced / revised to make the process more efficient. Promoter / acquirer will be permitted to specify an indicative price for delisting which shall not be less than the floor price.Promoter will be bound to accept the price discovered through reverse book building if the same is equal to the floor price / indicative price and the role of merchant banker involved in the delisting process has been elaborated.