For the second consecutive day, shares of Essar Oil were on the decline after the market regulator changed the rule for delisting on Wednesday.

Adding to its 4 per cent fall, the stock on Friday plunged 7.5 per cent to ₹100.15, on the BSE. The counter also witnessed heavy trading volumes. As against a two-week average of 85,000 shares, 5.18 lakh shares changed hands on the BSE. Essar Oil has proposed to delist its shares from the bourses and fixed the floor price at ₹108.18 a share.

The company plans to buy back 13.7 lakh shares or 27.5 per cent stake, held by the public.

The Securities and Exchange Board of India on Wednesday announced changes to delisting regulations.

According to the new rule, a delisting shall be considered successful only when the shareholding of the promoter, together with shares tendered by public shareholders, reaches 90 per cent of the total share capital. At least 25 per cent of the public shareholders need to be part of a reverse book-building process.

At the end of September, about 3.05 lakh retail investors held 11.18 per cent stake in the company. That means, to make the delisting offer successful, the company has to get the nod from at least 76,000 investors.

Analysts are now sceptical on whether the company will go ahead with the delisting plans in light of the new SEBI rules