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Our Bureau

Mumbai , Feb. 11

THE Securities and Exchange Board of India has asked stock exchanges to set up a panel of experts to determine the fair value of shares of companies that may be delisted for non-compliance with the listing agreements.

In a circular to stock exchanges, SEBI said it had amended the SEBI (Delisting of Securities), Guidelines, 2003, to make this possible. The promoter of the company, whose shares are delisted, shall be liable to compensate the investors by paying them the fair value, fixed by the panel of experts, as per the amendment. SEBI said it was removing the earlier provision whereby the fair value of the stocks was determined the arbitrator. The stock exchanges are required to ensure adequate and wide publicity about the delisting of securities through newspapers, besides prominently displaying the notification on delisting of securities with the reasons on the exchanges' trading systems and notice boards, the SEBI circular said.

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SEBI wants panel to decide fair value of delisted securities

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