Holding shares in a company that is delisting? Check what happens to your investment; how to get your money back
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Companies delist shares voluntarily or due to regulatory violations, making trading difficult for investors.
- ✓When a company delists, you still own your shares but cannot trade them on stock exchanges.
- ✓You can sell through an over-the-counter market or participate in a buyback if the company offers an exit price.
Story at a Glance
- Category
- MARKET
- Reported By
- mint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Companies may delist voluntarily or be removed for reasons such as regulatory violations, low market capitalisation or financial distress. Here's what happens to your tied investments.
While companies often seek to list their shares on stock exchanges, there can be instances when they choose to go the other way and withdraw their shares from the exchanges. This process is known as delisting.
Such an event limit a shareholder's ability to buy or sell the specified company's shares through the usual route, leaving them wondering what happens to the shares they hold and whether they can recover their investment.
The process of delisting securities for any company is governed by the markets regulator, Securities and Exchange Board of India (SEBI).
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