Delisting Regulations Of SEBI Not Applicable To Delisting Of Equity Shares Under Resolution Plan: Bombay High Court

The Bombay High Court ruled that the delisting regulations of the Securities and Exchange Board of India (SEBI) do not apply to the delisting of equity shares under a resolution plan in insolvency proceedings. The case involved a resolution plan under the Insolvency and Bankruptcy Code (IBC) for a company, where the creditors had decided to approve a delisting of the company’s shares. The petitioners contended that the SEBI regulations must apply to the delisting process, but the court held that the provisions of the IBC take precedence over SEBI regulations in such cases. The ruling clarifies the relationship between the two regulatory frameworks and ensures that IBC’s resolution process is not delayed by SEBI’s rules.