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SEBI Introduces Special Relaxations for PSU Delisting and InvIT Minimum Allotment.

Banking & Finance | Dated: 12 Sep 2025

In September 2025, the Securities and Exchange Board of India (SEBI) introduced new regulations to simplify voluntary delisting for Public Sector Undertakings (PSUs) where the government holds 90% or more equity and reduced the minimum allotment lot size for privately placed Infrastructure Investment Trusts (InvITs) in the primary market.

🎯 Key Highlights:

  • - The relaxations for PSUs remove the requirement of a two-thirds shareholder approval threshold for delisting and replace the traditional reverse book-building (RBB) mechanism with a fixed price approach, provided specific valuation conditions are met.
  • - These new rules are applicable to PSUs excluding banks, Non-Banking Financial Companies (NBFCs), and insurance companies, where the government holds a 90% or greater stake.

💡 Other Important Facts:

  • (i) Under the revised framework, PSUs can now delist at a fixed price, which must be at least 15% above the floor price (FP), independent of recent trading activity in the stock.
  • (ii) Separately, SEBI reduced the minimum allotment lot size for privately placed InvITs in the primary market to ₹25 lakh, aligning it with secondary market norms, down from the earlier threshold of ₹1 crore or ₹25 crore depending on the asset composition.
  • (iii) These measures aim to make market exits for PSUs more practical and facilitate wider participation in the primary market for privately placed InvITs.

📚 Test Your Knowledge:

Recently, which market regulator introduced special relaxations for PSU delisting where the government holds 90% or more equity?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

  • Chairperson: Tuhin Kanta Pandey
  • Headquarter : Mumbai