Timelines for completing various activities that are part of the delisting process have been added or amended under the new guidelines to make it more efficient.
To improve the transparency and efficiency of the delisting process, Sebi has stated that independent directors must make a reasoned recommendation on such a proposal, and promoters must publicly announce their desire to delist the company.
According to a notification reflected on June 10th, the Securities and Exchange Board of India (Sebi) has changed delisting guidelines to reflect this.
This follows the Sebi board’s approval in March of various adjustments to delisting regulations in order to make the process more transparent and efficient. Timelines for completing various activities that are part of the delisting process have been added or amended under the new guidelines to make it more efficient.
The committee of independent directors, according to Sebi, will be required to make reasoned recommendations on the delisting application.
By making an initial public statement, the promoter or buyer will be compelled to reveal their plan to delist the firm.
The promoter or acquirer’s proposal to voluntarily delist the company is currently reported to the exchanges by the company’s board, but the promoter or acquirer is not required to announce the plan to voluntarily delist the company to the public.
Within two working days of the tendering period’s end, the public notification for making a counteroffer, accepting or rejecting the revealed price would be made.
The current five-year cooling-off period for relisting after delivery has been shortened to three years.