Thursday, 2 April 2015

Amendments to Delisting, Takeover and Buy back of Shares Regulations by SEBI notified on 24 March 2015


This regulatory alert summarizes amendments notified by Securities and Exchange Board of India (‘SEBI’) on 24 March 2015 in ‘Delisting of Equity Shares Regulations, 2009’, ‘Substantial Acquisition & Takeover Regulations, 2011’ and ‘Buy Back of Securities Regulations, 1998’.

 

These amendments are a welcome step. SEBI has moved delisting regulations into right direction, and has tried to address significant concerns arising to promoters and minority shareholders in the past, while also putting additional responsibilities on the Board of Directors of the company proposed to be delisted.

 

Significant amendments include, direct delisting in a takeover scenario, reduction in timelines, changes in pricing mechanism and threshold criteria, providing stock exchange platform for delisting etc.

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