The new delisting norms, which require the participation of at least 25 per cent of public shareholders for the process to be successful, will ensure that promoters make a “very honest attempt” to reach out to investors, Sebi chief U K Sinha said on Saturday.
Ruling out any possibility of having a re-look at the new delisting norms that were approved by the Sebi board earlier this week, Sinha said the regulations would help address irregularities in the whole process.
“…my feeling is that it will incentivise, it will force the promoters to make a very honest attempt to reach out to shareholders. I am sure if they do that some of them will succeed,” Sinha told reporters here.
When asked whether there would be a re-look at the new norms on 25 per cent public shareholding tendering in a delisting process, as there is a perception it would adversely impact delisting activities, Sinha said, “not at all”.
Delisting would be considered successful only if at least 25 per cent of the public shareholders participated in the reverse book building process, as per the new norms of Securities and Exchange Board of India.
The 25 per cent public shareholding that have to be tendered in a delisting process has to be in demat form. Sinha said there are stories that some of the people were trying to have side deal with promoters if they wanted the delisting to succeed.