Archive · 16 Jun 2025
SEBI Board to Discuss PSU Delisting and Startup ESOPs
SEBI is holding a meeting to discuss changes to stock market rules.
They're looking at letting the government easily remove certain companies it owns (PSUs) from the stock market if they own a lot of the shares.
Also, they might let startup founders keep their employee stock options after the company goes public.
This aims to address issues like potentially overpriced government-owned stocks and give incentives to startup founders.
The board will also discuss other financial instruments like InvITs and REITs.
SEBI to discuss voluntary delisting norms for PSUs with high government stake.
The board will consider allowing startup founders to retain ESOPs post-IPO.
A separate mechanism for PSU delisting is proposed.
PSUs with thin public float and potentially inflated market prices will be assessed.
Additional topics include InvITs, REITs, AIFs, and FPI regulations.
- Who
- SEBI, PSU stakeholders, and startup founders are involved.
- What
- SEBI is discussing reforms including PSU delisting and ESOPs.
- When
- The board meeting is scheduled for June 18.
- Where
- India, concerning SEBI and the stock market regulations.
- Why
- To address issues with PSU delisting, ESOPs, and market regulations.
Arguments for Delisting PSUs
Arguments Against Delisting PSUs
Market Efficiency
Arguments for Delisting PSUs
Delisting allows for market adjustments and potential sale of assets.
Arguments Against Delisting PSUs
Delisting may reduce liquidity and investor access.
- Organization
- Securities and Exchange Board of India (SEBI)
- Meeting Date
- June 18
- PSU Delisting
- Focus on PSUs with 90%+ Government stake
- ESOPs
- For startup founders post-IPO
- Additional Topics
- InvITs, REITs, AIFs, and FPIs
