Delisting is when a stock is removed from the stock exchange, so it can no longer be bought or sold there. The Rupeezy app shows only listed stocks, so a delisted stock drops out of your Holdings in the app. The shares stay in your demat account, and you can still see them in your holdings in Dock, Rupeezy's back office.
What happens to a stock I hold that gets delisted?
You can't sell it on the exchange any more. Your way out depends on how the stock was delisted:
- Voluntary delisting: you get an exit offer before the stock leaves the exchange. If you don't take it, the acquirer still has to buy your shares at the delisting price for at least one year after delisting (see below).
- Compulsory delisting: the exchange appoints an independent valuer to fix a fair value for the shares. The promoters must buy your shares at that value within three months of the delisting, if you choose to sell. You can also keep them.
Once those windows close, there is no exchange market for the shares, and they can be hard to exit.
What are the types of delisting?
- Compulsory (forced) delisting, the exchange delists the stock by a reasoned order, for example for non-compliance with listing requirements or other regulatory issues.
- Voluntary delisting, the company's promoters or an acquirer choose to take it off the exchange, often as part of a restructuring. If the stock leaves every exchange with nationwide trading, such as NSE and BSE, the acquirer must first give all public shareholders an exit opportunity. If it stays listed on one of them, no exit offer is needed, because you can still sell there.
What if I miss the window to tender my shares in a voluntary delisting?
You can still sell to the acquirer. Shareholders whose shares were not tendered, or not accepted, during the offer can tender them for at least one year from the date of delisting. The acquirer has to accept them at the same price at which the stock was delisted.