The Securities and Exchanges Board of India (Sebi) is considering to replace the current delisting method with the tender offer route, The Hindu BusinessLine reported.

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The current reverse book-building method takes the average closing price of an equity share in the previous six months, which is set as the floor or the minimum price that the shareholders will have to be paid by the promoters who intend to de-list.

The tender offer route requires the company promoters to give shareholders a price range, the report said citing a source close to the development.

SEBI wants to simplify the process of de-listing companies from stock exchanges to plug holes in the rules that could lead to potential misuse.