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Sebi board approves delisting report, defers demutualisation

The Board of the Securities and Exchange Board of India has approved the report of the delisting panel while deferring its decision on demutualisation report and expanding the list of securities in derivatives at its meeting held in Mumbai on Saturday.

''The board has approved the delisting report while it felt the need for more discussion on the demutualisation and issues related to the derivatives,'' Sebi chairman G N Bajpai told reporters after the meeting.

The SEBI board's approval now paves the way for setting up a separate body, Central Listing Authority, the sources said.

Among the major highlights of the Sebi panel on delisting, headed by Sebi executive director Pratip Kar, had recommended reverse book building process for the companies seeking delisting of their shares from the stock exchanges. The panel had recommended that the open offer price should be determined through the book-building process.

Although, the board has deferred the approval of Justice M H Kania Committee report on demutualisation, the Sebi board is expected to give final approval at its next meeting scheduled to be held on November 28, 2002, the sources said.

''We will adhere by the timeframe we have committed for undertaking certain reforms,'' Sebi chairman said.

It may be recalled that Union Finance Minister Jaswant Singh had announced that the Finance Ministry will give final nod to the demutualisation within next four weeks while speaking at a function organised by the Bombay Stock Exchange on October 26, 2002.

The Sebi board's approval to the report was necessary prior to the final approval of Finance Ministry, market sources said.

The Sebi board was to discuss and finalise the list of securities to be added in the existing 30 securities in derivatives segment on the bourses. However, the issue was also deffered for want of more discussion, the Sebi chairman said.

UNI

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