The NSE was brought up in the Indian market to promote transparency in the Indian capital market and along with BSE which helps develop the Indian capital markets, they raise stock exchange where stocks, commodities and bonds are traded between companies. When a company is listed, they can be delisted either through voluntary option or involuntarily. The premium article gives an account on how a company gets delisted both voluntarily and involuntarily and the repercussion it has on the existing investors with the delisted shares.
When a company intends to raise money from the public by issuing shares, it brings out an IPO (Initial Public Offering) and gets listed on a stock exchange such as the BSE or the NSE. Once a listing appears, it is easy for investors to buy or sell shares of that company through the stock exchanges. In 2019, 16 companies got listed on Indian stock exchanges (BSE and NSE).
The reverse of listing is called ‘delisting’. This happens when a company removes its shares from being traded on the stock exchanges. Delisting can be either voluntary or involuntary. Let’s take a closer look at both these types, with examples.
1. Voluntary delisting
What does it mean?
As the name suggests, voluntary delisting happens when a company takes the decision to delist itself....