• Wed. Feb 28th, 2024

‘India’s first major economy to switch to T+1 for all scrips, it’s turning point’, says Butch

‘India’s first major economy to switch to T+1 for all scrips, it’s turning point’, says Butch

July 24, 2023 / 05:30 PM IST

SEBI Press Conference Live | A consultation paper on delisting criteria is likely to be received by December

“Before December, there may be a consultation paper,” said SEBI chief Madhabi Puri Buch, who currently has SEBIHASA reverse book building and when you reach 90 percent, “you reach a price… the industry is telling us they have found some problems there”.

In reverse book building, certain market players, anticipating delisting, acquire those shares in a concerted bid to cross 10 per cent, so they cannot cross 90 per cent, “and then to cross 90 per cent, the price spikes… this is not sustainable”.

“It’s a question of seeing what happens to the bids and looking at the bids as it gets closer to delisting,” Buch added, adding, “Sometimes, there’s a difference between getting fair value for an investor and extracting more value… We have to balance the needs of both.”

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