IBC delisting norms: Small shareholders ask Sebi for review

Investor protection bodies say new rules force minority stockholders to part with their holdings at a token price

Minority shareholders are miffed at the lenient delisting process for companies facing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). 

According to sources, several investor protection bodies have written to the Securities and Exchange Board of India (Sebi) for a review of the norms, which they say are anti-minority shareholders. The special delisting norms for companies under the IBC, released earlier this week, offer a raw deal to minority shareholders who will be forced to tender their shares virtually free.

As per the new rules, a company under the IBC is no longer required to follow the reverse book