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Nov 21, 2018
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Sebi allows promoters to make counter offers
The Securities and Exchange Board of India (Sebi) has allowed promoters to make counter offer to shareholders of companies that are planning to delist from stock exchanges, a move aimed at plugging loopholes in the current method. The Sebi has put in place a system for price discovery according to the reverse book building (RRB) method, along with considering counter offers of promoters. At present, if the price discovered through reverse book building is not attractive to the promoter, he may unilaterally reject the price and the whole exercise becomes futile.
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