Delisting of Shares

About Delisting of Shares:

• It means removing the shares of a listed company from a stock exchange. Once delisted, the securities of that company can no longer be traded on the stock exchange.
• Delisting can be either voluntary or compulsory.
  • In voluntary delisting, a company decides on its own to remove its securities from a stock exchange.
  • In compulsory delisting, they are removed as a penal measure for the company not making submissions or complying with requirements set out in the listing agreement within the prescribed timeframes.
• If a company wants to delist its securities, it needs to buy back 90% of the total issued shares.

Key facts about SEBI:

• It was established in April 1988 as an executive body and was given statutory powers in January 1992 through the SEBI Act, 1992.
• It is responsible for issuing regulations for various participants in the securities market, such as listed companies, brokers, mutual funds and rating agencies.
• It monitors and regulates the Indian capital and securities market while ensuring to protect the interests of the investors, formulating regulations and guidelines.