The reform will be approved at the 210th SEBI Board meeting and will apply to PSUs except for banks, NBFCs and insurance companies if the Government of India or other PSUs holds at least 90% of their shareholdings.
The revised SEBI listing regulations allow eligible PSUs to register via a fixed price mechanism. This route eliminates the existing requirement to obtain a majority of two-thirds of approval from public shareholders. The new framework aims to address the challenges facing PSUs with very low public floats. There, market prices often do not reflect true financial performance or value.
Under the new rules, the listed price must be at least 15% above the floor price. Floor price must be the highest among the volume-weighted average price for the past 52 weeks, the highest acquisition price for the past 26 weeks, or the rating determined by two independent registered appraisers.
To protect the remaining public shareholders, Sebi also laid out a mechanism for unclaimed payments. If a qualified PSU makes a voluntary strike within 13 months of delisting, the money from non-lending shareholders will be transferred to the designated account for seven years, then it will be transferred to the Investor Education and Protection Fund (IEPF) or SEBI’s Investor Protection Fund (IPEF). Investors can still claim membership fees from these funds after transfer.
Also Read: SEBI Board Meeting: Regulators approve PSU listing, IPO reforms and securities non-realization. The 10 key proposals were finalised after the public consultation process in May 2025 and the opinions of SEBI’s Key Market Advisory Committee. The move is expected to make delisting easier, faster and more cost-effective for qualified PSUs.
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