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SEBI issues detailed guidelines

MUMBAI FEB. 17. The Securities and Exchange Board of India has issued detailed guidelines on delisting of shares from stock exchanges (SE) stating that investors have to be given an exit option for which the price has be to determined in accordance with the book building process.

A company may delist from the SE where its securities are listed provided that they have been listed for a minimum period of three years on any exchange, SEBI said here today.

These guidelines come at a time when many multinationals have made open offers to delist their scrips from exchanges.

The SEBI said an exit opportunity need not be given in cases where shares continue to be listed in a SE having nation-wide trading terminals such as Bombay and National stock exchanges. When a company, which is listed on any SEs other than those having nation-wide terminals, seeks delisting, an exit offer should be made in accordance with SEBI's Delisting of Securities guidelines 2003, which come into effect with immediate effect, it said.

There would not be any complusion for existing company to remain listed on any SE merely because it is a regional SE.

The SEBI also notified the establisment of Central Listing Authority to bring about uniformity in due diligence process for scrutinising listing applications. SEs may delist companies, which have been suspended for a minimum period of six months for non-compliance with the SEBI's listing agreement, SEBI said, adding relisting would be allowed only after two years. — PTI

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