1. What is Delisting in the Stock Market?
Delisting is the process of removal or withdrawal of a company’s stock from a stock exchange, ending its public trading.
2. Which Companies Typically Choose to Delist?
Companies opting for delisting can be both profit-making and loss-making, and may include those undergoing restructuring, mergers, shifting to private ownership, or facing financial challenges.
3. Common Reasons for Delisting:
Reasons vary from financial downturns, strategic business shifts, mergers and acquisitions, to failure in meeting regulatory compliance.
4. Delisting Procedure in India:
It involves a board resolution, shareholder approval, and an open offer for share buyback, all under the regulations set by SEBI.
5. Restrictions on Delisting in India:
SEBI imposes strict guidelines to ensure fair valuation for shareholders and compliance with legal and procedural norms.
6. Role of SEBI in Delisting:
The Securities and Exchange Board of India (SEBI) regulates the delisting process to protect investor interests and ensure transparency and fairness.
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