Delisting of Small Companies
Delisting Regulations provide for simplified procedure of delisting for small companies and exempt them from the requirements of Chapter IV of the Delisting Regulations subject to certain conditions. Currently, one of such conditions is that the shares of the company have not been traded for the preceding one year.
Based on suggestion receive from Investor Association, Board has approved the proposal that the condition of no trading for preceding one year may be relaxed and the small companies, whose trading of equity shares during the twelve calendar months is less than 10% of the total number of shares of such company, would also be eligible for simplified procedure of delisting.
However, to protect the interest of investors, the exit price shall not be less than the floor price determined for the purpose of Reverse Book Building for not frequently traded securities in terms of Delisting Regulations read with SEBI Takeover Regulations.
Source : Extract from SEBI Board Meeting PR No. 283/2015 Dated 30.11.2015