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How to Sell Delisted Shares in India? | Delisted Shares List

How to Sell Delisted Shares in India? | Delisted Shares List | What is Delisting of Shares? | What happens if a Stock is Delisted

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?

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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.

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What happens if a Stock is Delisted?

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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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Delisted Shares List in 2023

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Company Name
Lannett Co Inc
Pear Therapeutics Inc
Atlas Technical Consultants Inc
Tpg Pace Beneficial Ii Corp
Kalera Public Ltd Co.
Virgin Orbit Holdings Inc
Plx Pharma Inc
Neovasc Inc
Amryt Pharma PLC
Gelesis Holdings Inc
Gigcapital5 Inc
Dmy Technology Group Inc Vi
Codiak Biosciences Inc
Charah Solutions Inc
Charah Solutions Inc
Boxed Inc
Apollo Endosurgery Inc
Shaw Communications Inc
Yamana Gold Inc
Volta Inc
Aspen Group Inc
Agrofresh Solutions Inc
Duck Creek Technologies Inc
Calcimedica Inc
Tech & Energy Transition Corp
Svb Financial Group
Signify Health Inc
Signature Bank Corp
Waitr Holdings Inc
Atlas Corp
Rocket Internet Growth Opportunities Corp
Corazon Capital V838 Monoceros Corp
Altra Industrial Motion Corp
Levere Holdings Corp
Ldh Growth Corp I
Evo Payments Inc
Dragoneer Growth Opportunities Corp Iii
Sio Gene Therapies Inc
Qutoutiao Inc
Loyalty Ventures Inc
Iaa Inc
Isoplexis Corp
Alerislife Inc
Atlas Air Worldwide Holdings Inc
Kadem Sustainable Impact Corp
America Movil SAB de CV
Lead Edge Growth Opportunities Ltd.
Gfl Environmental Inc
Emerging Markets Horizon Corp
Agile Growth Corp
Independence Holdings Corp
Warburg Pincus Capital Corp I-b
Vivint Smart Home Inc
Svf Investment Corp 2
Myovant Sciences Ltd.
First Eagle Alternative Capital Bdc Inc
Srax Inc
F-star Therapeutics Inc
First Reserve Sustainable Growth Corp
Rubius Therapeutics Inc
Getnet Adquirencia E Servicos Para Meios De Pagamento Sa - Instituicao De Pagamento
Canon Inc
Lucira Health Inc
Concert Pharmaceuticals Inc
O2micro International Ltd.
Cyren Ltd.
Albireo Pharma Inc
Opiant Pharmaceuticals Inc
Ibere Pharmaceuticals
Umpqua Holdings Corp
Resolute Forest Products Inc
Pingtan Marine Enterprise Ltd.
Cowen Inc
Elevate Credit Inc
Coupa Software Inc
Cincor Pharma Inc
Sorrento Therapeutics Inc
1life Healthcare Inc
Paya Holdings Inc
Lhc Group Inc
Weber Inc
South Jersey Industries Inc
Reed's Inc
Partner Communications Co Ltd.
Avaya Holdings Corp
Ffbw Inc
Velodyne Lidar Inc
Scion Tech Growth Ii
Pivotal Investment Corp Iii
Metacrine Inc
G Squared Ascend I Inc
Qumu Corp
Horizon Global Corp
Cincinnati Bancorp Inc
China Southern Airlines Co Ltd.
Store Capital Corp

Upcoming list

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SymbolName of Company
MODTHREADModern Threads (India) Ltd.
ATCOMAtcom Technologies Limited
DSKULKARNIDS Kulkarni Developers Limited
FIVECOREFive Core Electronics Limited
PRUDMOULIPrudential Sugar Corporation Limited
RUSHABEARRushabh Precision Bearings Limited
VALECHAENGValecha Engineering Limited
RMMILResurgere Mines & Minerals Limited
VISUINTLVisu International Limited
GAMMONINDGammon India Limited
VALUEINDValue Industries Limited
PINCONPincon Spirit Limited
NAKODANakoda Limited
GITANJALIGitanjali Gems Limited
FEDDERELECFedders Electric and Engineering Limited
NUTEKNu Tek India Limited
RAINBOWPAPRainbow Papers Limited
BINANIINDBinani Industries Limited
DOLPHINOFFDolphin Offshore Enterprises (India) Limited
MANPASANDManpasand Beverages Limited
WINSOMEWinsome Yarns Limited
MVLMVL Limited
BANSALBansal Multiflex Limited
CELESTIALCelestial Biolabs Limited
EONEon Electric Limited
BLUEBLENDSBlue Blends (I) Limited
TALWALKARSTalwalkars Better Value Fitness Limited
TALWGYMTalwalkars Healthclubs Limited
OPALOpal Luxury Time Products Limited
UNIPLYUniply Industries Limited
KSERASERAKSS Limited
ATLASCYCLEAtlas Cycles (Haryana) Ltd
BILENERGYBil Energy Systems Ltd
OISLOcl Iron And Steel Ltd
TECHNOFABTechnofab Engineering Ltd
ZICOMZicom Electronic Security Systems Ltd
ALCHEMAlchemist Limited
ARCOTECHArcotech Limited
EUROMULTIEuro Multivision Limited
SHIRPUR-GShirpur Gold Refinery Limited
DQEDQ Entertainment (International) Limited
AUTOLITINDAutolite (India) Limited
CKPLEISURECKP Leisure Limited
POWERFULPowerful Technologies Limited
JIYAECO#Jiya Eco-Products Limited
SONISOYASoni Soya Products Limited
OPTOCIRCUIOpto Circuits (India) Limited
AHLWESTAsian Hotels (West) Limited
JMTAUTOLTDJMT Auto Limited
MCDHOLDINGMcDowell Holdings Limited
JINDCOTJindal Cotex Limited
ATNINTERATN International Limited
JIKINDJIK Industries Limited
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How to Sell Delisted Shares in India?

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

MethodDescription
Over-the-counter (OTC) marketDecentralized market where investors can contact brokers or dealers to sell their delisted shares.
Auction platformsOnline auction platforms where investors can list their shares for sale and attract potential buyers.
Negotiated dealsInvestors can negotiate directly with potential buyers to sell their delisted shares, either through personal contacts or social media platforms.
Reverse book-building processThe 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.

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How to Sell Delisted Shares through RTA?

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StepAction
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.

FAQs

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  1. 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.

  2. 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.

  3. 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.

  4. 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).

  5. 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.

  6. 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.

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