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Informist, Wednesday, Sept. 3, 2025

 

MUMBAI – The Securities and Exchange Board of India added special provisions for public sector undertakings under its delisting regulations, according to a gazette notificaton. These special provisions will be applicable for PSUs other than banks, non-banking financial companies, and insurance companies.

 

As part of this, the regulator amended the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021. The new regulations will apply to any fresh delisting offers from now.

 

According to these special provisions for select PSUs, these companies will need to get floor price from two independent registered valuers. Under normal provisions, companies are required to get floor price from one independent valuer. Other special provisions related to floor price determination were largely similar to the normal provisions, which included calculating floor price through volume weighted average price.

 

Once delisted, the select PSUs can apply for a voluntary strike-off. If the strike-off is effected after one year of delisting, companies would need to transfer the amount, owed to shareholders who had not applied in the delisting process, to an account with a stock exchange. The stock exchange will hold the ammount for seven years and shareholders can claim their money from exchanges.  End

 

Reported by Anshul Choudhary

Edited by Akul Nishant Akhoury

 

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