Sebi looking to simplify de-listing process to make it investor friendly, says report
Updated : July 25, 2018 10:20 AM IST
The Securities and Exchanges Board of India (Sebi) is looking if it can do away with the reverse book-building method of price discovery for de-listing companies, The Hindu BusinessLine reported.
One of the options pitched in the expert committee meet was to replace the current de-listing method with the tender offer route, where the company promoters would give shareholders a price range, sources told the paper, adding the alternative is yet to be fine-tuned.
The current method, reverse book-building takes the average closing price of an equity share in the previous six months which is set as the floor or the minimum price that the shareholders will have to be paid by the promoters who intend to de-list.