Analysis of the Delisting, SAST & Buy Back Regulations

SEBI on March 24, 2015 issued overhauling amendments to the SEBI (Delisting of Equity Shares) Regulation, 2009 (the Delisting Regulations) along with SEBI (Substantial Acquisition of Shares and Takeover) Regulation, 2011 (SAST/ Takeover Regulations) and SEBI (Buy Back of Securities) Regulation, 1998 (the Buyback Regulations).

Ms. Anjali Aggarwal
Vice President
Taking into account the slower pace of Delisting offers in India, SEBI has revamped the norms that reduce the time taken for completing the process. It has also introduced a new concept of Delisting Offers into the SAST Regulations, 2011, which aim to provide a new opportunity to the Acquirer to even go in for delisting, by giving a Takeover Open Offer.

A major common amendment by the Board in all the three Regulations is that a Stock Exchange mechanism will be provided for facilitating the tendering of shares by the shareholders and settlement of the same by the Stock Exchanges having Nationwide Trading Terminal. This will relieve the shareholders from the levy of heavy Capital Gains Tax as compared to a nominal STT. 

Main highlights of the Amendment to SEBI (Delisting of Equity Shares) Regulation, 2009

  • SEBI in its Board Meeting had already primarily decided upon the various amendments it proposed to promulgate in the Delisting Regulations. 
  • Now, SEBI vide its amendment dated March 24, 2015 has inserted various new clauses as well as deleted certain Regulations and amended certain provisions.

An analysis of the amendments in the Delisting Regulations & their impact have been provided in this downloadable article. Click here 


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