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.

What is the Delisting of Shares?

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.

Delisted Shares List in 2023

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How to Sell Delisted Shares in India?

Here is a table view of the multiple ways to sell delisted shares in India:

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.

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