The Securities and Exchange Board of India (SEBI) on September 25, 2024, issued the Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021,
The following has been stated namely: -
• Regulation 19A which states “Floor Price” has been inserted which states: -
“The floor price of the equity shares proposed to be delisted through reverse book building process or through fixed price process, as the case may be, shall not be less than the highest of the following:
(i) Volume weighted average price paid or payable for acquisitions by the acquirer along with persons acting in concert, during the 52 weeks immediately preceding the reference date”
• Regulation 20A which specifies “Fixed Delisting Price” has been inserted which states: -
“(1) In case the acquirer has proposed delisting through fixed price process; the acquirer shall provide a fixed delisting price which shall be at least 15 percent more than the floor price calculated in terms of regulation 19A”
• Part-E which states “Special Provisions for Delisting of Investment Holding Company” has been inserted.
This shall come into force on September 25, 2024
Provided that the provisions of these regulations shall be applicable to such delisting offers whose initial public announcement is made on or after the date of coming into force of these regulations
Provided further that an acquirer may make the delisting offer in terms of the provisions of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 as they existed before the coming into force of these regulations till the sixtieth day from September 25, 2024.
[Notification No. SEBI/LAD-NRO/GN/2024/206]
