SEBI eased delisting norms and tightened influencer’s rules

Current Context: On 28th June Several changes were introduced by the Securities and Exchange Board of India (SEBI).

• 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%

Answer: D) The minimum premium over the floor price for delisting now stands at 15%.