Time To Lift The Squeeze On Squeeze-Outs

In recent years, we have seen progressive regulatory reforms easing the pathway for take-private deals in India. Despite these reforms, a clear and effective "squeeze-out" mechanism remains absent. This article co-authored by Yashasvi Mohanram and Sumnima Kataruka analyses the key legal hurdles as well as the recent judicial rulings highlighting the pressing need for a structured framework akin to other jurisdictions to help controlling shareholders acquire full ownership post-delisting.

Over the past few years, SEBI has made commendable strides in liberalizing the framework for take-private transactions involving listed companies. The 2021 amendments to the Takeover Regulations enabled consolidated takeover and delisting offers. More recently, last year's introduction of a fixed-price delisting regime in the Delisting Regulations addressed a long-standing industry demand. Yet, despite these reforms, the absence of a reliable squeeze-out mechanism continues to