India's SEBI to Review Delisting Rules, Chairman Pandey Says

India's markets regulator will revisit its delisting framework, chairman Tuhin Kanti Pandey said at a summit on Friday. The review aims to make capital market exits smoother and more predictable.

The Securities and Exchange Board of India has rolled out a series of reforms over the past few years. Faster trade settlements and simplified registration for foreign investors are among the changes. In 2024, the regulator permitted companies to delist via a fixed-price route, where shareholders receive a pre-set exit price. A voluntary delisting framework for public sector companies with more than 90% promoter ownership was also approved.

The fixed-price route sits alongside the reverse book-building process, which determines the exit price through investor bids. Each mechanism shifts the balance of power between promoters and minority shareholders. The fixed-price route gives promoters more control over the exit price. Reverse book-building often produces a higher payout for minority holders. Any revision to the framework could tighten minority safeguards or speed up promoter exits. The PSU delisting framework, meanwhile, could unlock value for shareholders in state-owned firms if the rules become clearer.

Pandey did not specify which parts of the delisting rules are under review. The regulator typically publishes consultation papers before finalising changes. Those papers are expected in the coming months, he said. That timeline gives market participants a window to submit feedback.