With Riders: Sebi exempts IBC firms from delisting norms

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Mumbai | Published: June 5, 2018 5:28:29 AM

Sebi said the resolution plan should lay down a specific procedure to complete the delisting or provide an exit option to the existing public shareholders at a price specified in the plan.

debi, IBC firms, delisting norms, sebi exempts ibc firmsThe Securities and Exchange Board of India has exempted companies under the Insolvency and Bankruptcy Code from following the prescribed norms of delisting, with certain riders. (Reuters)

The Securities and Exchange Board of India has exempted companies under the Insolvency and Bankruptcy Code from following the prescribed norms of delisting, with certain riders. “Nothing in these regulations shall apply to any delisting of equity shares of a listed entity made pursuant to a resolution plan approved under section 31 of the Insolvency and Bankruptcy Code, 2016,” a notification in the Gazette of India said.

Sebi said the resolution plan should lay down a specific procedure to complete the delisting or provide an exit option to the existing public shareholders at a price specified in the plan.

“…provided that, exit to the shareholders should be at a price which shall not be less than the liquidation value as determined under regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, after paying off dues in the order of priority as defined under section 53 of the Insolvency and Bankruptcy Code, 2016”, it said.

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