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videos | IST

Sebi provides relaxations for insolvent firms

Market regulator Sebi has relaxed requirements to comply with delisting norms for companies facing insolvency proceedings provided the resolution plan lays down the procedure for delisting that particular entity from the exchanges.
According to a notification on June 1, Sebi says that the resolution plan has to lays down the procedure for de-listing that particular entity from the exchanges or that the plans provides an exit option to the existing public shareholders at a specified price.
the exit for the shareholders should be at a price that is not less than the liquidation value determined after paying off dues.
More than 750 entities, including many listed firms, are facing insolvency proceedings. But if there is no equity value left in the company then the equity shareholders may be asked to exit without being paid, said experts.