The reforms had been permitted within the 210th Sebi board assembly and apply to PSUs—excluding banks, NBFCs, and insurance coverage corporations—the place the Authorities of India or different PSUs maintain no less than 90% of the full shareholding.
The amended Sebi delisting laws will permit eligible PSUs to delist via a set value mechanism. This route does away with the prevailing requirement of acquiring a two-thirds majority approval from public shareholders. The brand new framework goals to deal with challenges confronted by PSUs with a really low public float, the place market costs typically don’t replicate their true monetary efficiency or worth.
Underneath the brand new guidelines, the delisting value should be no less than 15% above the ground value. The ground value, in flip, should be the very best among the many volume-weighted common value over the previous 52 weeks, the very best acquisition value prior to now 26 weeks, or a valuation decided by two impartial registered valuers.
To guard residual public shareholders, Sebi has additionally laid out a mechanism for unclaimed funds. If any eligible PSU goes for voluntary strike-off inside 13 months of delisting, the cash resulting from non-tendering shareholders will likely be transferred to a delegated account for seven years, after which it would transfer to the Investor Schooling and Safety Fund (IEPF) or SEBI’s Investor Safety and Schooling Fund (IPEF). Traders can nonetheless declare their dues from these funds after the switch.
Additionally Learn: Sebi board assembly: Regulator approves PSU delisting, IPO reforms, dematerialisation of Securities. 10 key takeawaysThese proposals had been finalised after a public session course of in Could 2025 and inputs from Sebi’s Main Markets Advisory Committee. The transfer is anticipated to make delisting simpler, sooner, and more cost effective for qualifying PSUs.
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t signify the views of Financial Instances)
