Author analysed some provisions of Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 which was notified by SEBI on 10th June, 2021.
Definitions
Bidding Period:
Means the period within which shareholders may tender their shares in acceptance of the offer for delisting of equity shares of the company made under these regulations.
Detailed Public Announcement:
Means the announcement made by the acquirer in terms of regulation 15 read with Schedule I of these regulations.
Delisting Period:
Means the period between the date of initial public announcement and the date of payment of consideration to the shareholders, whose shares have been accepted in the reverse book building process or the date on which shares have been returned upon failure of the delisting offer, as the case may be
Discovered Price:
Means the price discovered through reverse book building process in terms of Schedule II of these Regulations.
Floor Price:
Means the minimum price offered by the acquirer, computed in accordance with regulation 8 of the Takeover Regulations as amended from time to time, while making the proposal for voluntarily delisting of the equity shares of the company;
Indicative price:
Means the price offered by the acquirer, which is higher than the floor price, while making the proposal to voluntarily delist the equity shares of the company;
Initial Public Announcement:
Means the first announcement, including subsequent modifications thereto, if any, made by the acquirer to express its intention to voluntarily delist the equity shares of the company from all the recognized stock exchanges.
Chapter –II Regulation 3: Scope & Applicability
Regulation 4(1)/ (2)/ (3): Conditions for Delisting
No acquirer shall propose delisting of equity shares of a company, if the acquirer had sold the equity shares of the company during the period of 6 months prior to the date of the initial public announcement
Regulation 4(5):
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