Sebi seeks to protect public shareholders' interests during CIRP

Non-promoter entities in bankruptcy-hit firms to be given opportunity to acquire shares


Khushboo Tiwari Mumbai
The Securities and Exchange Board of India (Sebi) has proposed a framework to protect the interests of public equity shareholders in case of listed companies undergoing insolvency proceedings.

In a discussion paper, the capital markets regulator has proposed that public equity shareholders should get an opportunity to acquire shares of the entity created, following the completion of the corporate insolvency resolution process (CIRP).

Sebi has said the price offered to these shareholders should be the same as the one agreed upon by the resolution applicant.

First Published: Nov 10 2022 | 8:28 PM IST

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