Amendments to Delisting Regulations – Introduction of Fixed Price Process for Voluntary Delisting | SEBI Approves Amendments to Listing Regulations, PIT Regulations to Facilitate Ease of Doing Business

SEBI has approved a slew of measures to the regulatory landscape of listed companies at its recent board meeting, including significant amendments to the LODR Regulations and PIT Regulations. Relaxations have been provided to listed companies in terms of timelines and thresholds for making certain disclosures to stock exchanges, and board committees have been granted an additional time of 3 months to fill up any vacancies. Further, SEBI has also approved measures that will reduce the number of filings required to be made by listed companies and will surely facilitate the ease of doing business for listed companies. PIT Regulations have also been made more stringent by amending the definitions of ‘connected persons’ and ‘immediate relative’.

In addition to the above, SEBI has also notified changes to the Delisting Regulations with the aim to further streamline the delisting process for companies. Amongst multiple changes, a fixed price method has been introduced as an alternative to the reverse book building process. Further, specific provisions for delisting of investment holding companies have also been inserted in the Delisting Regulations which will ensure protection to shareholders of such companies.

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