SEBI News: These 5 government companies will benefit after the new delisting rules, read the list:

News Topical, Digital Desk : SEBI News: The Securities and Exchange Board of India (SEBI) has come up with new rules to ease the delisting process for Public Sector Units (PSUs).

Under these rules, the delisting process of companies in which the government's stake is 90 percent or more will be easy. Under this new rule of SEBI, a total of five PSUs KIOCL, HMT, ITI, State Trading Corporation and Fertilisers & Chemicals Travancore will be eligible for delisting.

SEBI President Tuhin Kant Pandey said that these rules have been made for those PSUs in which the stake of public shareholders is very low. These are those government companies in which it is currently difficult to comply with the minimum public shareholder rules. Under the new rules, two-thirds approval of public shareholders will not be required for delisting and the delisting price will be decided by the fixed price method, which will be at least 15 percent more than the floor price. Which are those five government companies?

KIOCL: This is a Bengaluru-based mining company in which the government holds 99.03% stake. The market cap of the company is around Rs 17,166 crore.
HMT: Established in 1953, this company is known for watches and machine tools, in which the government holds a 93.69% stake. The market cap is around Rs 3,139 crore.
ITI: This telecom technology sector company is 90.02% owned by the government and has a market cap of around Rs 29,398 crore.
State Trading Corporation: This company under the Ministry of Commerce was involved in international trade, with a market cap of around Rs 889 crore.
Fertilisers & Chemicals Travancore: Established in 1943, this Kochi-based company is India's first major fertilizer company. The government holds 90% stake in it and its market cap is Rs 64,364 crore.

SEBI has also clarified that after delisting, these PSUs can continue as a non-listed entity and choose the voluntary strike-off option.

If a company chooses the strike-off option, it will have to initiate the process within one year from the date of delisting. This move will provide relief to those PSUs which are currently unable to comply with the minimum shareholding rules of public shareholders and will help simplify the strategic disinvestment efforts of the government.