Making delisting norms easier, SEBI on Friday said promoters either will have to ensure that at least 25 per cent of minority shareholders participate in such a process or can demonstrate that the entire 100 per cent investors have been approached.

The move is part of SEBI’s efforts that a good percentage of minority shareholders participate in the delisting process.

The Securities and Exchange Board of India said promoters either have to meet the condition that at least 25 per cent minority shareholders tender their shares or need to reach out to 100 per cent of the minority shareholders.

Letters to all shareholders

In case the acquirer or the merchant banker sends the letter of offer to all the shareholders and provide a detailed account regarding the status of delivery of offer letter, the same would be considered deemed compliance under the provisions of the Delisting Regulations, SEBI said.

The regulator further said in case the acquirer and merchant banker is “unable to deliver offer letter to all shareholders by modes other than speed post or registered post, efforts should be made by them to deliver the letter of offer. In that case, a detailed account regarding the status of delivery of letter of offer... would also be considered as deemed compliance.”

Sinha’s comment

Recently, SEBI Chairman UK Sinha said that during delisting in the past, people had got away with just 2-3 shareholders participating in it. Earlier, in March, the regulator SEBI notified new regulations that reduce the time taken for completing the process and provide relaxations on a case-to-case basis.

The timeline for completing the delisting process has been cut to 76 working days, from 137 calendar days (about 117 working days). At times, the process takes more than a year.

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