SEBI's Delisting Regulations 2021 introduced the Reverse Book Building (RBB) process for voluntary delisting of companies from stock exchanges. Under RBB, the promoter announces a floor price, and public shareholders bid at or above this price. The delisting succeeds if 90% of public shareholding is tendered and accepted. If successful, remaining shareholders receive the discovered price. The process replaces the earlier fixed price method, ensuring market-driven price discovery. Key amendments include enhanced disclosure requirements, timeline specifications, and investor protection measures for retail shareholders.

The Reverse Book Building process revolutionized delisting by shifting from promoter-determined fixed prices to market-driven price discovery. Unlike the previous system where promoters set a price and shareholders accepted or rejected it, RBB allows shareholders to quote their desired exit price, with the final price being the lowest price at which 90% public shareholding gets tendered. This protects minority shareholders from undervaluation while giving promoters certainty about delisting costs. The process spans 5-10 working days for bidding, with separate categories for retail and institutional investors. Success requires both the 90% threshold and promoter acceptance of the discovered price. Failed attempts allow re-attempts after six months. The regulation addresses concerns about fair valuation, especially relevant for family-controlled businesses seeking to exit public markets amid compliance costs and market volatility.