SEBI relaxes norms for SMEs to delist from stock exchanges
Updated: Jan 14, 2016 01:58:01pm
New Delhi Jan 14 (KNN) To weed out the large number of illiquid stocks, capital markets regulator SEBI has relaxed norms for small companies with thinly traded shares to delist from the stock exchanges.
Security Exchange Board of India (SEBI), a main regulator of capital market has relaxed norms for small companies with thinly traded shares to delist from the stock exchange to weed out a large number of illiquid stocks, an official notification said.
As a result of this, small listed firms can get delisted from the stock exchanges if re trading has been less than 10 per cent of the total shares during the last 12 months.
At present, SEBI allows only those companies whose shares have not been traded for the preceding one year to get delisted.
There are more than 1000 small firms listed where trading has not been done for many years.
The move comes in force after the SEBI approved the norms in November.
In a notification, SEBI said, "the number of equity shares of the company traded on each such recognised stock exchange during the 12 calendar months immediately preceding the date of board meeting...Is less than 10 per cent of the total number of shares of such company, would be eligible for simplified procedure of delisting.”
However, the exit price for such delisting should not be lower than the floor price determined through reverse book building process. (KNN Bureau)
Security Exchange Board of India (SEBI), a main regulator of capital market has relaxed norms for small companies with thinly traded shares to delist from the stock exchange to weed out a large number of illiquid stocks, an official notification said.
As a result of this, small listed firms can get delisted from the stock exchanges if re trading has been less than 10 per cent of the total shares during the last 12 months.
At present, SEBI allows only those companies whose shares have not been traded for the preceding one year to get delisted.
There are more than 1000 small firms listed where trading has not been done for many years.
The move comes in force after the SEBI approved the norms in November.
In a notification, SEBI said, "the number of equity shares of the company traded on each such recognised stock exchange during the 12 calendar months immediately preceding the date of board meeting...Is less than 10 per cent of the total number of shares of such company, would be eligible for simplified procedure of delisting.”
However, the exit price for such delisting should not be lower than the floor price determined through reverse book building process. (KNN Bureau)
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