Press Trust of India
NEW DELHI, 16 JULY: Having revamped buyback, minimum public shareholding and takeover norms, market regulator Securities and Exchange Board of India (Sebi) is now set to overhaul delisting regulations for companies.
The Sebi has already started the process of a relook at the existing delisting norms. “We have already started the process of relooking at it (delisting regulations)… The work is going on delisting regulations,” Sebi Chairman U K Sinha said here.
In recent times, the capital market regulator has already overhauled norms pertaining to share buyback, minimum public shareholding, preferential allotment and takeovers.
Speaking at a conference here on venture capital and private equity, Mr Sinha said the market regulator has also received some suggestions about how the process of reverse book building is allegedly being misused by certain sections.
He also said the government would take a decision on ‘put and call options’ shortly. “The government procedure is taking a little time but I am quite assured that the government is going to take a call on that very shortly,” he added.
‘Put and call options’ given to any strategic investor in a company is a routine business globally. Such a provision in shareholder agreements gives the investor an option to either sell the shares (put option), or to buy more shares (call option) on a future date.
To a query on co-ordination between various regulators, Sebi chief said the issue has been gaining attention worldwide especially since 2008 financial crisis.
“My own impression is that so far as the regulators of financial sector are concerned, now there is a very strong mechanism in place… The FSDC discusses issues related to financial stability and cooperation (among regulators),” he said.
The Financial Stability and Development Council is a grouping of regulators which was set up by the government. On issues pertaining to venture capitalists, Mr Sinha said the regulator is ready to have a dialogue with them and discuss their concerns.