Market regulator Securities and Exchange Board of India (Sebi) on Wednesday introduced special delisting route for PSUs with 90% or more government holding. The decision was taken in a board meeting held today.
The capital market regulator also approved a proposal for mandating dematerialization of select shareholder classes pre-DRHP.
The announcement was made by Sebi Chairman Tuhin Kanta Pandey at press briefing.
The dematerialization rules will apply to promoters, key managerial persons (KMPs), directors, employees and Qualified Institutional Buyers (QIBs) and the move is aimed at reducing frauds improving transparency in the initial public offerings (IPO).
There are only five such PSU companies which have government holding in excess of 90%, Pandey said.
More to come…