SEBI Introduces New Rules For Delisting Offers

INTRODUCTION

On 10 June 2021, SEBI introduced the SEBI (Delisting of Equity Shares) Regulations, 2021 (Delisting Regulations) which have now completely replaced the erstwhile regulations from 2009. A revamp of the delisting regime was imminent, and SEBI has sought to plug certain legal ambiguities and practical challenges that plagued the earlier regulations. This Ergo analyses certain key considerations and process involved in a voluntary delisting of equity shares of a company under the new Delisting Regulations.

The Delisting Regulations do not apply to delisting pursuant to a resolution plan approved under section 31 of the Insolvency and Bankruptcy Code, 2016 subject to satisfaction of certain conditions. The Delisting Regulations have also introduced provisions relating to delisting of equity shares of a listed subsidiary company of a listed holding company pursuant to a scheme of arrangement under the Companies Act, 2013. These have been separately