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  • Delisting

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    Nipun Sachdeva
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    To understand delisting, one must first understand listing, which means a company's securities are admitted to trade on a stock exchange. Delisting is the reverse - it means the permanent removal of a listed company's securities from a stock exchange, so they can no longer be traded there. Delisting can be either voluntary, if initiated by the company, or compulsory if imposed by the stock exchange as a penalty for violations or lapses by the company.

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    To understand delisting, one must first understand listing, which means a company's securities are admitted to trade on a stock exchange. Delisting is the reverse - it means the permanent removal of a listed company's securities from a stock exchange, so they can no longer be traded there. Delisting can be either voluntary, if initiated by the company, or compulsory if imposed by the stock exchange as a penalty for violations or lapses by the company.

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    22 views4 pages

    Delisting

    Uploaded by

    Nipun Sachdeva
    To understand delisting, one must first understand listing, which means a company's securities are admitted to trade on a stock exchange. Delisting is the reverse - it means the permanent removal of a listed company's securities from a stock exchange, so they can no longer be traded there. Delisting can be either voluntary, if initiated by the company, or compulsory if imposed by the stock exchange as a penalty for violations or lapses by the company.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 4

    Delisting

    Meaning

    To be able to understand the meaning of delisting, one has to first understand the meaning of the
    word “Listing”.

    Listing means admission of a Company’s securities to the trading platform of a Stock Exchange, so as to
    provide marketability and liquidity to the security holders.

    STOCK
    LISTING = EXCHANGES + COMPANY

    “Delisting” is totally the reverse of listing. To delist means permanent removal of securities of a listed
    company from a stock exchange. As a consequence of delisting, the securities of that company would no
    longer be tradeable at that stock exchange.

    DELISTING = STOCK EXCHANGES - COMPANY

    "Delisting" i.e. the said removal from a Stock Exchange, may be Voluntary (i.e. at the will of the Company)
    or Compulsory (i.e. out of a penal action by the Stock Exchanges, for the reason of any violations/ lapses).

    How to Delist

    Compulsory Delisting
    Process Flowchart

    Process Flowchart

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