How to Sell Delisted Shares in India? | Delisted Shares List
This article will examine how to sell delisted shares in India. Firstly, we will define what delisting of shares is, what happens if a stock is delisted, and the delisted shares list in 2023.
Delisting of shares in India refers to the process of removing the shares of a company from a stock exchange so that they are no longer available for trading on that exchange.
This can happen voluntarily or involuntarily.
Voluntary delisting occurs when a company decides to remove its shares from a stock exchange.
This can happen for various reasons such as the company being acquired by another company, or the company’s management believing that the company would be better off as a privately held entity.
In such cases, the company makes an offer to buy back the shares from the public shareholders at a price that is mutually agreed upon.
Involuntary delisting occurs when a company is unable to meet the listing requirements of the stock exchange or violates the rules and regulations of the exchange.
This can happen if a company fails to submit its financial statements on time or if it is found to be involved in fraudulent activities.
In India, the Securities and Exchange Board of India (SEBI) regulates the process of delisting of shares. Companies are required to follow SEBI’s regulations and guidelines for delisting.
The process of delisting typically involves the company making a public announcement of its intention to delist, followed by a tender offer to buy back shares from public shareholders.
The offer price is determined through a reverse book-building process, where the company offers to buy back shares at a price that is acceptable to the majority of the shareholders.
If the offer is accepted by the requisite number of shareholders, the company’s shares are delisted from the stock exchange.
What happens if a Stock is Delisted?
When a stock is delisted, it means that it is no longer available for trading on the stock exchange where it was previously listed.
This can have several consequences for shareholders and the company.
For shareholders, if a stock is delisted, they will no longer be able to trade their shares on the exchange. They may still be able to sell their shares in the over-the-counter market, but the liquidity and price of such shares may be significantly lower.
In some cases, the company may offer to buy back shares from shareholders at a price that is determined through a reverse book-building process.
For the company, delisting can have several implications. It may indicate financial difficulties or other problems, which can affect investor confidence.
This can make it more difficult for the company to raise capital in the future.
Delisting can also result in a loss of visibility and prestige for the company, which can make it less attractive to potential investors or customers.
In addition, delisting can trigger certain contractual obligations for the company.
For example, if the company has issued bonds or other debt instruments that are listed on the exchange, delisting may trigger an event of default under the terms of those instruments, which can result in accelerated repayment obligations.
Overall, delisting can have significant consequences for both shareholders and the company.
It is important for investors to be aware of the risks associated with delisting and to closely monitor the financial health of the companies in which they invest.
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|Symbol||Name of Company|
|MODTHREAD||Modern Threads (India) Ltd.|
|ATCOM||Atcom Technologies Limited|
|DSKULKARNI||DS Kulkarni Developers Limited|
|FIVECORE||Five Core Electronics Limited|
|PRUDMOULI||Prudential Sugar Corporation Limited|
|RUSHABEAR||Rushabh Precision Bearings Limited|
|VALECHAENG||Valecha Engineering Limited|
|RMMIL||Resurgere Mines & Minerals Limited|
|VISUINTL||Visu International Limited|
|GAMMONIND||Gammon India Limited|
|VALUEIND||Value Industries Limited|
|PINCON||Pincon Spirit Limited|
|GITANJALI||Gitanjali Gems Limited|
|FEDDERELEC||Fedders Electric and Engineering Limited|
|NUTEK||Nu Tek India Limited|
|RAINBOWPAP||Rainbow Papers Limited|
|BINANIIND||Binani Industries Limited|
|DOLPHINOFF||Dolphin Offshore Enterprises (India) Limited|
|MANPASAND||Manpasand Beverages Limited|
|WINSOME||Winsome Yarns Limited|
|BANSAL||Bansal Multiflex Limited|
|CELESTIAL||Celestial Biolabs Limited|
|EON||Eon Electric Limited|
|BLUEBLENDS||Blue Blends (I) Limited|
|TALWALKARS||Talwalkars Better Value Fitness Limited|
|TALWGYM||Talwalkars Healthclubs Limited|
|OPAL||Opal Luxury Time Products Limited|
|UNIPLY||Uniply Industries Limited|
|ATLASCYCLE||Atlas Cycles (Haryana) Ltd|
|BILENERGY||Bil Energy Systems Ltd|
|OISL||Ocl Iron And Steel Ltd|
|TECHNOFAB||Technofab Engineering Ltd|
|ZICOM||Zicom Electronic Security Systems Ltd|
|EUROMULTI||Euro Multivision Limited|
|SHIRPUR-G||Shirpur Gold Refinery Limited|
|DQE||DQ Entertainment (International) Limited|
|AUTOLITIND||Autolite (India) Limited|
|CKPLEISURE||CKP Leisure Limited|
|POWERFUL||Powerful Technologies Limited|
|JIYAECO#||Jiya Eco-Products Limited|
|SONISOYA||Soni Soya Products Limited|
|OPTOCIRCUI||Opto Circuits (India) Limited|
|AHLWEST||Asian Hotels (West) Limited|
|JMTAUTOLTD||JMT Auto Limited|
|MCDHOLDING||McDowell Holdings Limited|
|JINDCOT||Jindal Cotex Limited|
|ATNINTER||ATN International Limited|
|JIKIND||JIK Industries Limited|
Here is a table view of the multiple ways to sell delisted shares in India:
|Over-the-counter (OTC) market||Decentralized market where investors can contact brokers or dealers to sell their delisted shares.|
|Auction platforms||Online auction platforms where investors can list their shares for sale and attract potential buyers.|
|Negotiated deals||Investors can negotiate directly with potential buyers to sell their delisted shares, either through personal contacts or social media platforms.|
|Reverse book-building process||The company may offer to buy back shares from shareholders at a price determined through a reverse book-building process, where shareholders submit bids for the price at which they are willing to sell their shares.|
It's important to note that selling delisted shares can be a complex and time-consuming process, and there may be limited demand for such shares. It is advisable to seek the assistance of a qualified professional, such as a stockbroker or financial advisor, before attempting to sell delisted shares.
|1.||Contact the company's registrar and transfer agent (RTA) to obtain the necessary paperwork for selling the delisted shares.|
|2.||Fill out the paperwork provided by the RTA, which may include a transfer form and a letter of indemnity.|
|3.||Provide proof of ownership of the shares, such as a copy of the share certificate or a statement from the depository participant (DP).|
|4.||Submit the completed paperwork and proof of ownership to the RTA.|
|5.||Wait for the RTA to verify the documents and transfer the shares to the buyer's account. This process may take several weeks to complete.|
|6.||Receive payment for the shares from the buyer. This may be in the form of a cheque or a direct credit to your bank account.|
- Can I still sell my delisted shares even if the company is bankrupt?
Yes, it is still possible to sell delisted shares even if the company is bankrupt. However, the price offered for such shares may be significantly lower than the market price.
- Will I receive the same price for delisted shares as the market price?
No, the price offered for delisted shares may be significantly lower than the market price. The price offered depends on various factors, such as the demand for the shares, the financial condition of the company, and the prevailing market conditions.
- What documents do I need to sell delisted shares?
You may need to provide documents such as the share certificate or statement from the Depository Participant (DP), transfer form, letter of indemnity, and proof of ownership to sell delisted shares.
- Is it necessary to have a Demat account to sell delisted shares?
Yes, you need to have a Demat account to sell delisted shares in India. If you do not have a Demat account, you can open one with a Depository Participant (DP).
- How long does it take to sell delisted shares?
The process of selling delisted shares may take several weeks to complete. The time taken depends on various factors, such as the mode of sale, the verification process, and the transfer of shares.
- Is it advisable to seek professional advice before selling delisted shares?
Yes, it is advisable to seek professional advice, such as from a stockbroker or financial advisor, before attempting to sell delisted shares. They can provide guidance on the best way to sell the shares and the potential risks involved.