Updated
Updated · Reuters · Jun 12
India's SEBI Reviews Delisting Rules, Expanding 2024 Push for Easier Market Exits
Updated
Updated · Reuters · Jun 12

India's SEBI Reviews Delisting Rules, Expanding 2024 Push for Easier Market Exits

3 articles · Updated · Reuters · Jun 12

Summary

  • SEBI said it will review India's delisting framework to make capital-market exits easier, with Chairman Tuhin Kanta Pandey framing the move as part of ensuring both fair entry and fair exit.
  • The review builds on 2024 changes that allowed fixed-price delistings as an alternative to reverse book-building, and on last year's voluntary delisting route for public-sector firms with promoter ownership above 90%.
  • Pandey also said SEBI will work with other regulators to simplify know-your-customer rules for non-resident Indians, another step aimed at reducing friction in market access.
  • The regulator is concurrently revisiting the Innovators Growth Platform for startups, a venue launched in 2016 and repeatedly relaxed since 2018 after strict eligibility and lock-in rules curbed listings.

Insights

As SEBI eases delisting rules for promoters, what new safeguards will protect minority shareholders from being forced out at unfair prices?
After multiple failed attempts since 2016, can SEBI's new plan finally make listing in India attractive for its own startups?
India is simplifying rules to attract foreign capital, so why does it block global e-commerce and investment deals at the WTO?