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Sebi s delisting proposals may help overcome the Hotel California problem

The Securities and Exchange Board of India (Sebi) is working on streamlining the delisting process in the Indian securities market. Currently, the reverse book-building process for delisting is complex and often dysfunctional. Sebi aims to make the process more adaptive to market dynamics by allowing acquirers to make a counter-offer even if they don t meet the 90% ownership threshold. The regulator also proposes connecting the counter-offer price to market dynamics and introducing the concept of "adjusted book value" to determine the floor price.

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