The 210th SEBI board meeting was approved and applied to PSUS – Excluding banks, NBFCs and insurance companies – where the Government of India or other PSU government owns at least 90% of the total shareholding.
Improved Sebi Delisting Regulations will allow character PSU to be delisted by a fixed price method. This route removes the current requirement of two -thirds majority approval from public shareholders. The purpose of the new structure is to eliminate the challenges faced by PSU with very little public float, where market prices often do not reflect their true financial operations or value.
Under the new rules, the delisting price should be at least 15% of the floor price. In turn, the floor price should be the highest in volume-weight average prices in the last 52 weeks, the highest acquisition price in the last 26 weeks, or assessed by two independent registered valuers.
To protect residual public shareholders, SEBI has also introduced a method for payment. If a character goes for a voluntary strike within 13 months of PSU delisting, the money will be transferred to the designated account for seven years due to non-tendering shareholders, then will go to the Investor Education and Protection Fund (IEPF) or SEBI investor defense and education fund. Investors can still claim their rest of the funds after the transfer.
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Also Read: SEBI Board Meeting: Regulator PSU Delisting, IPO Reforms, Dematirization of Securities. 10 Key Takeway
These proposals were finalized in May 2025 after the public consultation process and inputs of the SEBI primary markets advisory committee. This step is expected to make the delisting easier, faster and more cost-effective to qualify for PSU.
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