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SEBI eased delisting norms and tightened influencer’s rules

Published on June 28, 2024
Current Context: On 28th June Several changes were introduced by the Securities and Exchange Board of India (SEBI).
SEBI eased delisting norms and tightened influencer’s rules
  • Delisting Norms Eased:
    • SEBI has introduced a fixed-price process as an alternative to reverse book building for delisting offers.
    • The minimum premium over the floor price for delisting now stands at 15%.
    • The counteroffer threshold has been reduced to 75% (from 90%), provided at least half of the public shareholders tender their shares.
    • The “adjusted book value” is now used to determine the minimum price for both illiquid and liquid stocks.
  • Tightening Rules for Influencers (Finfluencers):
    • Registered advisors are barred from partnering with unregistered influencers (commonly known as finfluencers) who make investment claims.
    • Regulated entities must maintain a clear distinction from unregulated entities to safeguard investors from misleading information.
    • These reforms aim to streamline delisting procedures, protect investors, and enhance market integrity.

Question:

1 As per SEBI, What is the minimum premium a company must offer to public shareholders for delisting under the new rules?

  • A) 5%
  • B) 10%
  • C) 12%
  • D) 15%
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