Delisting of Shares

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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 is a statutory regulatory body that oversees the securities market in India.
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.

Q1: What are securities in the Stock market?

These are financial instruments issued to raise funds. The primary function of the securities markets is to enable the flow of capital from those that have it to those that need it.

Source: Why is a Reliance Capital Ltd investor challenging its resolution plan?