Delisting of shares is the process by which a company’s shares are removed from trading on a stock exchange, meaning investors can no longer buy or sell them through that exchange.
Types of delisting:
1. Voluntary delisting – The company itself decides to delist, often when:
2. Compulsory delisting – The stock exchange forces the delisting due to:
What happens to shareholders:
1. In a voluntary delisting, the company typically makes an exit offer to buy back shares from public shareholders at a determined price (through reverse book building in India).
2. After delisting, if you don’t sell during the exit offer, you can still transfer shares off-market, but liquidity is very limited.
If a company is delisted, your shares are not automatically lost. you still remain a shareholder, but you can no longer sell them on the stock exchange.
No, you don’t automatically lose your investment after a company is delisted. You still own the shares, but the problem is liquidity.
1. In a voluntary delisting, you’ll usually get an exit offer from the company to sell your shares at a determined price. If you accept, you get cash for your holdings.
2. If you don’t sell during the exit offer, you can still hold the shares and even sell them later off-market (via private transfer), but finding a buyer can be difficult.
3. In a compulsory delisting, promoters are typically required to buy your shares at a fair value determined by an independent valuer.
You can track ongoing or upcoming delistings from these reliable sources:
1. Stock Exchange Websites –
NSE: NSE Corporate Filings – Delisting
BSE: BSE Corporate Filings – Delisting
These list official notices, timelines, and exit offer details.
2. Company Announcements – Check the Investor Relations section of the company’s website or press releases for delisting updates.
3. Your Brokerage Platform – Many brokers display ongoing corporate actions, including delistings, in their announcements or notifications.
4. Financial News Portals – Sites like Moneycontrol, Economic Times, and Business Standard regularly cover major delisting events.
Yes, to receive delisting proceeds smoothly, you should ensure that your demat account and bank account details are up to date with your depository (NSDL/CDSL) and your broker.
Key points to check:
1. Bank account – Must be correctly linked to your demat account for direct credit of funds.
2. PAN & KYC – Ensure your PAN, Aadhaar (if applicable), and KYC details are complete and updated.
3. Contact details – Update your email and mobile with your broker to receive timely notifications.
If details are incorrect or incomplete, your payment may be delayed or sent via cheque, which takes longer. In voluntary delistings, the company’s registrar & transfer agent (RTA) will credit the proceeds directly to your registered bank account once your tendered shares are accepted.
