Key facts
- India's Securities and Exchange Board of India (SEBI) will review its delisting framework.
- SEBI Chairman Tuhin Kanta Pandey emphasized the need for fair entry and exit mechanisms in capital markets.
- Recent reforms include a fixed-price delisting route and a voluntary delisting framework for public sector companies.
- SEBI is also reviewing rules for the Innovators Growth Platform (IGP) to aid startup capital access.
- The regulator plans to simplify know-your-customer rules for non-resident Indians.
India's Securities and Exchange Board of India (SEBI) is set to review its delisting framework, aiming to streamline capital market processes and facilitate easier exits for companies. SEBI Chairman Tuhin Kanta Pandey announced the review, emphasizing that a robust capital market necessitates fair entry and exit opportunities for all participants.
Pandey highlighted that SEBI has been actively pursuing reforms to enhance the efficiency and attractiveness of India's capital markets. These initiatives include expediting trade settlements and simplifying the registration process for foreign investors. In 2024, the regulator introduced a fixed-price delisting route, offering an alternative to the traditional reverse book-building process for determining exit prices.
Furthermore, SEBI approved a voluntary delisting framework last year specifically for public sector companies where controlling shareholders held more than 90% of the equity. The regulator is also examining the rules governing the Innovators Growth Platform (IGP), previously known as the Institutional Trading Platform, to improve startups' access to long-term capital. Concurrently, SEBI plans to collaborate with other regulatory bodies to simplify know-your-customer (KYC) procedures for non-resident Indians.