01-01-1970 12:00 AM | Source: Reuters
India markets regulator to consider permitting delisting via fixed price
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India's markets regulator will consider permitting the delisting of companies via fixed price instead of the reverse book-building procedure, Chairperson Madhabi Puri Buch said on Monday.

The Securities and Exchange Board of India will issue a discussion paper on the subject by December, the regulator said.

In the reverse book-building process to delist a company from stock exchanges, shareholders place offers for the price at which they are willing to sell securities back to the promoters, or large shareholders who can influence company policy.

A delisting price is then computed based on these offers.

The market regulator is now considering permitting a promoter to place a delisting offer at a fixed price for shareholders to consider.

Separately, SEBI also intends to strengthen rules for corporate disclosures related to insider trading regulations.

Commenting on a pending decision on a revamp of mutual fund fee structures, Buch said that feedback from the industry is under review.