Delisting is when a company’s stock is taken off a stock exchange like the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE).
This means you can’t buy or sell those stocks anymore. The whole delisting process is controlled by the market regulator, which in India is the Securities and Exchange Board of India (SEBI).
Companies get delisted for different reasons, some by choice and some not:
- Low Market Value: If a company’s overall value on the stock market drops too much, its shares may be delisted.
- Bankruptcy: If a company declares bankruptcy, its shares can be delisted.
- Failing to Comply with Regulatory Guideline: If a company doesn’t meet the requirements set by the stock exchange or the regulator, it might be delisted.
What are the Types of Delisting?
Delisting comes in two types:
Voluntary Delisting
Some companies decide to become private by voluntarily leaving the stock exchange. They might do this for strategic reasons, mergers, or to run without the rules that come with being public. In such cases, the company usually buys its shares back from shareholders.
Involuntary Delisting
Companies face involuntary delisting when they break rules or don’t meet financial standards. If a company doesn’t meet the listing rules, the exchange warns them. If they don’t fix it, the exchange removes their stocks.
List of Delisted Stocks from NSE
| Symbol | Company Name | Delisted Date | Type of Delisting |
| SUBCAPCITY | International Constructions Limited | 12-Jan-23 | Voluntary Delisting |
| COX&KINGS | Cox & Kings Limited | 23-Feb-23 | Delisting – Liquidation |
| STERLINBIO | Sterling Biotech Limited | 03-Mar-23 | Voluntary Delisting |
| SINTEX | Sintex Industries Limited | 10-Mar-23 | Voluntary Delisting |
| CKPLEISURE | CKP Leisure Limited | 22-Mar-23 | Compulsory Delisting |
| POWERFUL | Powerful Technologies Limited | 22-Mar-23 | Compulsory Delisting |
| DFMFOODS | DFM Foods Limited | 05-Apr-23 | Voluntary Delisting |
| PSL | PSL Limited | 21-Apr-23 | Delisting – Liquidation |
| EMCO | Emco Limited | 28-Apr-23 | Delisting – Liquidation |
| AUTORIDFIN | Autoriders Finance Limited | 23-May-23 | Compulsory Delisting |
| NATNLSTEEL | National Steel And Agro Industries Limited | 27-Jun-23 | Voluntary Delisting |
| OISL | OCL Iron and Steel Limited | 18-Aug-23 | Voluntary Delisting |
| AUTOLITIND | Autolite (India) Limited | 29-Aug-23 | Compulsory Delisting |
| VIRESCENT | Virescent Renewable Energy Trust | 07-Sep-23 | Voluntary Delisting |
Source: NSE
Are Delisted Shares Eligible for a Comeback?
Companies can come back on the exchange after getting delisted. This is called relisting. They will be required to meet the listing regulatory requirements.
SEBI’s permission allows voluntarily delisted shares to return after five years from their delisting date. However, compulsory delisted shares must wait a ten-year wait before rejoining the exchanges.
Conclusion
Delisting is the removal of a company’s stock from exchanges like NSE or BSE. Regulated by SEBI in India, delisting reasons range from market value dips to non-compliance with regulations. Understanding the types of delisting and the possibility of relisting after certain waiting periods is crucial in comprehending how companies and investors navigate the stock market.
