Delisting norms to become simpler- SEBI

Delisting norms to become simpler: SEBI

The Securities and Exchange Board of India (Sebi) is planning to review norms with respect to delisting of companies to make the process smoother, said chairperson Madhabi Puri Buch in an event on Thursday.

In addition, the regulator is looking to revise regulations for perpetual insiders, which include founders/promoters and senior executives. She pointed out that currently there exists no window for them to trade shares.

“It was believed that we will not review the delisting norms and will stay with the reverse book-building process. We floated a consultation paper and have received feedback; we will take the proposal to our board during the next board meeting.”

Sebi had, on August 14, issued a consultation paper for reviewing the voluntary delisting norms. She asserted that the regulator is not guided by dogma but only by data and logic.

In case of perpetual insiders, she said that while there exists a regulation called the ‘Trading Plan’ for such perpetual insiders, nobody has ever filed the same. “Humara regulation hi galat hai (Our regulation itself is wrong),” she added. As a result, it is under review following public consultation and will be taken up in the upcoming board meets.

“It was believed that Sebi is very dogmatic about insider trading and the trading plan. We operate on fundamental principles and data, and so again we had a consultation paper on reforming the ‘trading plan’,” she said. This proposal, too, could be taken up in December or January by the Sebi board.

Not on a hyperdrive to regulate:

She also responded to the feedback that the regulator was on a hyperdrive and consultation papers were being issued every third day by saying that it was reflection of change in regulatory attitude for the better.

Between 2003 and 2013, only 7% of circulars issued by the market regulator were consultation paper. However, over the next nine years, it rose to 17%, clearly indicating that it was consulting more. And in the past year, this number has almost doubled to 33%.

According to her, it was fine if decisions are delayed but no regulation will come out without analysis of data.

“So, it is not that we are imposing more regulations on the market, you are getting that feeling because Sebi is consulting more,” Buch said. “If you tell us, we will not consult,” she added in jest.

Sahara case to continue:

Buch also made it clear that the Sahara case would continue despite the demise of founder Subrata Roy. According to PTI, she said that the Sahara matter was about an entity’s conduct and added that it would continue regardless of whether an individual is alive or not.

(With inputs from PTI)