In March this year, SEBI amended certain provisions of the
delisting regulations with a view to simplify and expedite the
whole process of voluntary delisting of securities but while doing
so it has unwittingly tinkered with some vital provisions which
have actually become a new headache for listed entities seeking
delisting.
Provision for determination of floor price is the most important
provision in the delisting regulations. Under the un-amended
regulations, the floor price was required to be determined with
reference to the trading on stock exchange during the period of 26
weeks or 2 weeks preceding the date on which the stock exchange was
notified of the board meeting in which the delisting proposal was
considered. This provision has been amended now to provide that the
floor price shall be determined in accordance with SEBI formula
prescribed under SEBI takeover regulations. Devil lies in this
cross reference as SEBI pricing formula based on trading under
