Sebi introduces book-building for share delisting

However, the Sebi board deferred the much-awaited decision on demutalisation of the stock exchanges, expansion of derivatives products and the size of individual derivatives contract to its next board meeting which is scheduled on November 28.

Sebi chairman G.N. Bajpai said: 8220;The board has cleared the proposal of the delisting panel, which will make way for setting up a CLA and Sebi would adhere to the time-frame for setting up the same. We also discussed about the proposal for demutalisation of the stock exchanges and expansion of derivatives product but no decision has been taken till date. The matter would be discussed in the next board meeting.8221;

Said Sebi sources: 8220;A comprehensive set of guidelines for delisting would be framed which would cover compensation to the investors through arbitration in the delisted company, ban on delisting through schemes of arrangement and buyback and the setting up of a CLA for the screening of application of IPOs.8221;