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Core Purpose

This notification introduces the Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2025, to further amend the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021, by inserting special provisions for the delisting of equity shares of Public Sector Undertakings.

Detailed Summary

The Securities and Exchange Board of India (SEBI) issued Notification No. SEBI/LAD-NRO/GN/2025/257 on September 1, 2025, in Mumbai, exercising powers under section 31 read with section 21A of the Securities Contracts (Regulation) Act, 1956, and sections 11(1), 11A(2), and 30 of the Securities and Exchange Board of India Act, 1992. This notification introduces the Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2025, which amend the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021. The amendment inserts a new 'Part-F: SPECIAL PROVISIONS FOR DELISTING OF PUBLIC SECTOR UNDERTAKING' into Chapter VI, applicable to delisting offers for which an initial public announcement has not yet been made. These provisions apply to public sector undertakings, excluding Banks, Non-Banking Financial Companies, and Insurance Companies, for delisting their equity shares from all recognized stock exchanges. Key conditions for delisting include: the acquirer's aggregate shareholding (with other PSUs) must equal or exceed ninety percent of total issued shares; shareholder approval via a special resolution passed through postal ballot or e-voting; a fixed price delisting process; a floor price determined as the highest of the volume-weighted average price over 52 weeks, the highest price over 26 weeks, or a price from a joint valuation report by two independent registered valuers; and a delisting price at least fifteen percent higher than the determined floor price. Furthermore, specific conditions are outlined for voluntary strike-off of such delisted PSUs, including transferring amounts due to remaining public shareholders to a designated stock exchange account for seven years, after which unclaimed funds are transferred to the Investor Education and Protection Fund under the Companies Act, 2013, or SEBI's Investor Protection and Education Fund.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-MH-E-03092025-265904 EXTRAORDINARY PART III-Section 4 PUBLISHED BY AUTHORITY No. 600] NEW DELHI, TUESDAY, SEPTEMBER 2, 2025/BHADRA 11, 1947 4 THE GAZETTE OF INDIA: EXTRAORDINARY [PART III-SEC.4] SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 1st September, 2025 SECURITIES AND EXCHANGE BOARD OF INDIA (DELISTING OF EQUITY SHARES) (AMENDMENT) REGULATIONS, 2025 No. SEBI/LAD-NRO/GN/2025/257 — In exercise of the powers conferred by section 31 read with section 21A of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and section 30, sub-section (1) of section 11 and sub-section (2) of section 11A of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021, namely: 1. 2. 3. These regulations may be called the Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2025. They shall come into force on the date of their publication in the Official Gazette: Provided that the provisions of these regulations shall be applicable to the delisting offers where initial public announcement for the delisting has not been made. In the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021, in Chapter VI, after Part E, the following Part shall be inserted, namely,- "Part-F SPECIAL PROVISIONS FOR DELISTING OF PUBLIC SECTOR UNDERTAKING Delisting of Equity Shares of Public Sector Undertakings 38B. (1) The provisions of these regulations, shall mutatis mutandis apply to delisting of equity shares of public sector undertakings, other than Banks, Non-Banking Financial Companies and Insurance Companies, subject to the provisions of sub-regulations (2) and (3). (2) The equity shares of public sector undertaking referred to in sub-regulation (1) may be delisted from all the recognised stock exchanges where they are listed, subject to the following: (a) the aggregate shareholding of the acquirer along with other public sector undertaking(s) equal or exceed ninety per cent of the total issued shares of that class; (b) the delisting is approved by the shareholders of the public sector undertaking referred to in sub-regulation (1), by way of a special resolution passed through postal ballot or e-voting, and the explanatory statement to the notice of such resolution contains all material facts in relation to such delisting; (c) the delisting is undertaken through the fixed price process; (d) the floor price of the equity shares proposed to be delisted shall not be less than the highest of the following: (i) volume weighted average price paid or payable for acquisitions by the acquirer along with persons acting in concert, during the 52 weeks immediately preceding the reference date; (ii) the highest price paid or payable for any acquisition by the acquirer along with persons acting in concert during the 26 weeks immediately preceding the reference date; (iii) the price determined under a joint valuation report obtained from two independent registered valuers, taking into account valuation parameters such as book value, adjusted book value, comparable trading multiples, income approach and any other customary valuation metrics as applicable for valuation of shares of companies in the same industry; and (e) the delisting price shall be at least fifteen percent higher than the price determined under sub-clause (d). (3) Where a public sector undertaking whose shares have been delisted in accordance with the provisions of this Part undertakes voluntary strike-off under the applicable laws, and if such strike-off is effected after one year from the date of delisting but not later than thirty days from the expiry of such one-year period, then such strike-off shall be subject to fulfilment of the following conditions- (a) the amount which is due to the remaining public shareholders who have not tendered their shares in the delisting process shall be transferred to specified account of the designated stock exchange, which shall hold such amount for a period of seven years during which period the investors may claim the amount payable to them from the designated Stock Exchange; (b) after completion of the period specified under clause (a), such amount shall be transferred as per applicable laws to the Investor Education and Protection Fund established under the Companies Act, 2013; (c) if, for any reason, the amount specified in clause (b) cannot be transferred to the Investor Education and Protection Fund established under the Companies Act, 2013, such amount shall be transferred to the Investor Protection and Education Fund of the Board; and (d) after the transfer of amount to the Investor Education and Protection Fund or Investor Protection and Education Fund, as the case may be, the investor may claim the payable amount from the designated Stock Exchange, which in turn may claim reimbursement from the aforesaid fund in accordance with the procedures as may be specified by the Board from time to time." AMIT PRADHAN, Executive Director [ADVT.-III/4/Exty./333/2025-26] Footnotes: 1. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 were published in the Gazette of India on June 10, 2021 vide No. SEBI/LAD-NRO/GN/2021-25. 2. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 were subsequently amended on, (1) 3rd August, 2021 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/30. (2) 25th September 2024 by the Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2024 vide No. SEBI/LAD-NRO/GN/2024/206. (3) 28th November 2024 by the Securities and Exchange Board of India (Attestation of Documents) (Amendment) Regulations, 2024 vide No. SEBI/LAD-NRO/GN/2024/212. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. GORAKHA NATH Digitally signed by GORAKHA YADAVA NATH YADAVA Date: 2025.09.03 10:58:25 +05'30'

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