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

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.

      - 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.

Main Point :-   (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.
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