Markets regulator Sebi has notified rules allowing companies to delist shares through a fixed price mechanism as an alternative to the reverse book building process, a move aimed at facilitating ease of doing business for listed firms.
Under the Reverse Book Building (RBB) process, a firm planning to delist its shares from the stock exchange needs to initiate the process by making a public announcement. The rules mandated a minimum floor price for the delisting offer.
Further, shareholders of the company place offers to sell their securities back to the promoters or large shareholders under the process.
In its notification on Wednesday, Sebi introduced the fixed price process as an alternative to the RBB process for delisting of companies whose shares are frequently traded.
The fixed price offered by an acquirer would be at least 15 per cent premium over the floor price.
Additionally, the regulator has provided modification of the counter-offer mechanism in case of delisting throu
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