SEBI (Delisting of Securities) Regulations, 2009 provide an exit mechanism to the existing shareholders in the
Voluntary delisting whereby the exit price is determined through the Reverse Book Building process- The floor price
is calculated in accordance with the regulations and the shareholders have to make a bid at a price either on or
above the floor price. The exit price would be decided on the basis of bidding by the public shareholders. If the exit
price so determined is acceptable to the promoter, the promoter pays that price to the investors and the investors
Those investors who do not participate in the Reverse Book Building process have an option to offer their shares for
sale to the promoters. The promoters are under an obligation to accept the shares at the same exit price. This
facility is usually available for a period of at least one year from the date of closure of the delisting process.
Voluntary Delisting for a small company- Any company with paid up capital of less than Rs. ten crore and net worth
less than Rs. twenty five crores, whose equity shares have not been traded in any recognized stock exchange for a
period of one year and has not been suspended for any non-compliance in the preceding one year would not be
required to follow the Reverse Book Building process. In such cases, the promoter decides the exit price in
consultation with the merchant banker. The promoter writes to all public shareholders informing the proposal for
delisting. Once the requisite consent is received, the promoter makes payment of consideration for the same and
the shareholders can exit.