AMENDMENT TO THE SEBI (DELISTING OF SECURITIES) GUIDELINES, 2003
Summary
This circular amends the SEBI (Delisting of Securities) Guidelines, 2003 to simplify the framework for compulsory delisting of non-compliant companies. The amendments mandate stock exchanges to provide wide public notice and disclose the fair value of securities upon delisting. Fair value is determined by experts appointed by the stock exchange from a selected panel, based on factors specified in the Takeover Regulations.
Text
In order to simplify the existing framework w.r.t. Compulsory Delisting and make it possible for stock exchanges to delist the Companies which are non-compliant with the provisions of Listing Agreement, it has been decided to amend the SEBI (Delisting Of Securities) Guidelines, 2003.
The amendment seeks to ensure adequate and wide public notice of the fact of delisting and disclosure of the fair value through newspapers and notice boards/trading systems of the stock exchange upon delisting of a security.
The amendment also seeks to determine the fair value of securities by persons appointed by the stock exchange out of a panel of experts, which shall also be selected by the stock exchange.
Where the stock exchange delists the securities of a company, it shall ensure that adequate and wide public notice of the fact of delisting is given through newspapers and on the notice boards/trading systems of the stock exchange and shall ensure disclosure in all such notices of the fair value of such securities determined in accordance with the Explanation to clause 16.1.
Explanation: For the purposes of this sub-clause, fair value of securities shall be determined by persons appointed by the stock exchange out of a panel of experts, which shall also be selected by the stock exchange, having regard to the factors mentioned in regulation 20 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.
Clause 16.2 shall be omitted.
Source: SecMarx — AMENDMENT TO THE SEBI (DELISTING OF SECURITIES) GUIDELINES, 2003. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.