Delisting companies

Hi @nithin

Why companies Delist in stock markets…what are the major reasons?

Is this because of illiquidity?

Hey @Harsha2

There are broadly two main reasons why companies delist :

Forced delisting typically happens due to non-compliance with SEBI listing requirements or other legal issues.

To give you an example, it can be due to bankruptcy of a company and if such company is sold in the NCLT process, the equity of the company can be written off to zero like Sintex industries.

Voluntarily delisting refers to companies voluntarily delisting themselves from the exchange because of corporate restructuring. In this case, companies typically offer a buyback window to investors.

You can read more on this here : What does delisting of a stock mean?

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