SEBI Intends On Simplifying Delisting Regulations

By Consultants Review Team Friday, 17 November 2023

The Securities and Exchange Board of India (Sebi) intends to evaluate delisting standards to make the process more efficient, said chairperson Madhabi Puri Buch at an event on Thursday.

Furthermore, the regulator is considering revising rules for perpetual insiders, which include founders/promoters and top executives. She pointed out that there is now no window for them to trade shares.

She stated at the Federation of Indian Chambers of Commerce and Industry (FICCI) Capital Market Conference that the regulator will present the delisting recommendation to its board for approval at the next board meeting.

"It was assumed that we would not review the delisting standards and would continue with the reverse book-building process." We circulated a consultation paper and received responses; we will present the plan to our board at their next meeting."

On August 14, Sebi issued a consultation document to evaluate the voluntary delisting norms. She claimed that the regulator is led solely by evidence and reasoning, rather than dogma.

In the issue of perpetual insiders, she stated that, while a regulation known as the 'Trading Plan' exists for such perpetual insiders, no one has ever filed it. "Humara regulation hi galat hai (Our regulation itself is wrong)," she went on to say. As a result, it is being reviewed following public comment and will be discussed at upcoming board meetings.

"It was widely assumed that Sebi is adamant about insider trading and the trading plan." "Because we operate on fundamental principles and data, we had another consultation paper on reforming the 'trading plan,'" she explained. The Sebi board may also consider this idea in December or January.

She also responded to feedback that the regulator was on hyperdrive and that consultation papers were being produced every third day by noting that it was a manifestation of a positive shift in regulatory mentality.

Only 7% of market regulator circulars produced between 2003 and 2013 were consultation papers. However, it increased to 17% during the next nine years, indicating that it was consulting more. In the last year, this figure has nearly doubled to 33%.

It was alright with her if choices were postponed, but no regulation would be issued without data analysis. "So, it is not that we are imposing more regulations on the market, you are getting that feeling because Sebi is consulting more," Buch went on to say. "If you tell us, we will not consult," she jokingly said.


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