Table of Contents
- Procedure for voluntary delisting of equity shares from all stock exchanges.
- Initial public announcement (Regulation -8)
- Appointment of Manager to the offer (Regulation -9)
- Approval by Board of Directors (Regulation -10)
- Approval of the shareholders through special resolution (Regulation -11)
What happens when a stock is delisted from an exchange?
When a company delists from a major exchange, shareholders still legally own their shares, even if they’re worthless in value. Generally speaking, delisting is regarded as a precursor to the act of declaring bankruptcy.
How long does a delisting process take?
Exchange-Initiated Delisting An issue is added to this list upon the Exchange’s filing of a Form 25 with the SEC and remains posted until the application to delist the issue becomes effective with the SEC (generally 10 days).
How do I sell delisted stock in India?
If a company is delisted, you are still a shareholder, to the extent of a number of shares held. And yet, you cannot sell those shares on any exchange. However, you can sell it on the over-the-counter market. This means you can look for a buyer outside the stock exchange.
What is difference between compulsory delisting and voluntary delisting?
Compulsory delisting refers to permanent removal of securities from a bourse for non-compliance or when the promoter shareholding breaches the threshold of 90 per cent. In voluntary delisting, a listed company decides to permanently remove its securities from a bourse.
Can you buy delisted stock?
Although some brokerages restrict such OTC transactions, you generally can sell a delisted stock just as you would a stock that trades on an exchange. A delisted stock can continue to trade over the counter for years, even if the company files for bankruptcy.
How do I get off a delisted stock?
Though delisting does not affect your ownership, shares may not hold any value post-delisting. Thus, if any of the stocks that you own get delisted, it is better to sell your shares. You can either exit the market or sell it to the company when it announces buyback.