markets
What is delisting of a stock?
Dec 02, 05:12

In simple terms, the delisting of a stock means the removal of shares of a listed company from the stock exchange.

After delisting, shares of the company cease to be traded on the stocks exchanges. There are voluntary or involuntary delisting of shares.

In the case of involuntary delisting, the market regulator prohibits the company to trade its shares.

On the other hand, companies go for voluntary delisting when their promoters wish to expand their operations, restructure, or get acquired by some other company. Promoters may also choose to delist if they wish to raise their stake in the company.

last 5 years saw significant delisting in india