SEBI has introduced a new delisting framework for Public Sector Undertakings (PSUs) through the 2025 amendment to the SEBI (Delisting of Equity Shares) Regulations. The reform replaces the reverse book-building (RBB) method with a fixed-price mechanism backed by independent valuation, bringing greater clarity and predictability to the delisting process. Designed to streamline PSU exits and protect minority shareholders, the newly inserted Regulation 38B ensures transparency, fair pricing, and strong investor safeguards.
Key Highlights:
‣ Fixed-Price Process – RBB mechanism replaced with a transparent fixed-price route
‣ Fair Premium – Mandatory 15% premium over the floor price determined by valuers
‣ Eligibility Threshold – Applicable where combined Government + PSU shareholding ≥ 90%
‣ Investor Protection – Unclaimed funds held with stock exchanges for 7 years, then transferred to IEPF/IPEF
‣ Compliance Clarity – Structured procedures for valuation, shareholder approval, and fund management
