Sebi notifies easier delisting rules for PSU & revises InvITs norms

Current Context: 1 September 2025 — SEBI notified special relaxations for voluntary delisting of PSUs with 90%+ government holding (excluding banks, NBFCs, insurers).

• Key relaxation: No need for two‑thirds public shareholder approval; adoption of a fixed‑price mechanism (≥15% above floor price) instead of reverse book‑building, with revised floor price computation norms.
• Investor protection: Proceeds from unsubmitted shares after the 1‑year exit window must be deposited with the stock exchange within 30 days and retained for 7 years for claims.
• InvITs reform: Minimum primary market investment in privately placed InvITs cut to ₹25 lakh (from ₹1 crore/₹25 crore), aligning with secondary market norms.
• Related‑party norms: Related parties of REIT/InvIT sponsors, managers, and project managers excluded from “public” category unless they are QIBs.
• Cash flow flexibility: Holding companies can offset negative cash flows against inflows from SPVs before distribution, with mandatory disclosures.
• Compliance ease: Reporting timelines for quarterly, valuation, and financial statements harmonised to reduce compliance burden.

Question:

Q.1 According to the Securities and Exchange Board of India (SEBI), the fixed price for PSU voluntary delisting must be at least:
a) 10% above the floor price
b) 15% above the floor price
c) 14% above the floor price
d) 20% above the floor price

Answer: b) SEBI mandated a minimum 15% premium over the computed floor price, replacing the reverse book-building process.