Separate Mechanism For Voluntary Delisting Of PSUs
The Securities and Exchange Board of India on 06th May 2025 issued a consultation paper to propose a separate mechanism for voluntary delisting of Public Sector Undertakings which deviate from the provisions provided under SEBI (Delisting of Equity Shares) Regulations, 2021. This blog aims to analyse the proposal and its probable impact on different stakeholders in the market. Related: Tax Reforms For A Prosperous India : Simplifying Compliance And Boosting Growth What is delisting? Delisting of Equity Shares is a formal process whereby listed companies permanently remove their shares from being traded on any or all of the stock exchange. Delisting thereby terminates the availability of securities in the secondary market through public trading platforms. It saves the companies from regulations and compliances that apply on listed entities, therefore, reducing its obligations to the market and to public scrutiny. Under the governi...