While approving stricter norms to deal with insider trading menace SEBI has also eased delisting norms for companies
Market regulator Securities and Exchange Board of India (SEBI) on Wednesday approved stricter norms to deal with insider trading menace. SEBI also widened the definition of insider by including persons connected on the basis of being in any contractual, fiduciary or employment relationship that allows such person access to unpublished price sensitive information (UPSI).
The market regulator also eased delisting norms for companies by approving amendments to delisting regulations. To make delisting process easier, the SEBI board also decided to bring down total time required for completion of voluntary delisting from the exchange to 76 days from the current 137 days.
"The delisting shall be considered successful only when the shareholding of promoter together with shares tendered by public shareholders reaches 90% of total share capital. At least, 25% of the number of public shareholders need to be a part of reverse book building process," SEBI said.
SEBI Board in its meeting also approved new reforms in consent mechanism including giving the company an opportunity to settle a matter before issuing a show cause notice.
The market regulator said it is also reviewing the policy to restrict a company, its promoter or director, who has been categorised as wilful defaulter, from raising capital and would soon come out with a discussion paper.
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