INDIA: SEBI Amends Delisting of Equity Shares Regulations

Thursday January 21 2016

Securities Exchange Board of India (SEBI) has announced the following amendments to the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009. In regulation 27, in sub-regulation (1), for clause (b), the following has been substituted:

• “(b) the number of equity shares of the company traded on each such recognised stock exchange during the twelve calendar months immediately preceding the date of board meeting referred to in sub-regulation (1B) of regulation 8 is less than ten per cent of the total number of shares of such company: Provided that where the share capital of a particular class of shares of the company is not identical throughout such period, the weighted average of the shares of such class shall represent the total number of shares of such class of shares of the company; and”

Additionally, in regulation 27, in sub-regulation (3), for clause (b), the following has also been substituted:

• “(b) the exit price offered to the public shareholders shall not be less than the floor price determined in terms of sub-regulation (2) of regulation 15 of these regulations read with clause (e) of sub-regulation (2) of regulation 8 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;”

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