What does delisting mean?
Delisting is the process of removing stocks from the stock exchange. These will not show up on Kite for trading. However, they will still be visible in the holdings on Console.
What can clients do if a stock that they hold is delisted?
Unfortunately, clients cannot do anything unless the company lists again or announces an exit offer. To learn more, see What should be done if someone missed applying for a delisting? Investments in delisted stocks should be considered a loss or be written off completely unless a client can find someone to buy the stock through an off-market transaction. To learn more, see What are the different ways to transfer shares from a Zerodha demat account to another demat account?
What if a client misses tendering the shares in the delisting window?
The clients can still sell the stocks back to the promoters of the company, who are obligated to purchase the stock even if a client misses to tender their shares. This facility is usually available for a period of 1 year from the date of closing of the tender offer. To learn more, create a ticket.
Types of delisting
Forced delisting : Forced delisting typically happens due to non-compliance with SEBI listing requirements or other legal issues.
Voluntary delisting : Voluntarily delisting refers to companies voluntarily delisting themselves from the exchange because of corporate restructuring. In this case, companies typically offer a buyback window to investors.
Did you know? To close an account with delisted shares, they must be transferred to a different demat account using DIS or CDSL easiest if the ISIN is active. Delisted shares cannot be gifted. To learn more, see What are the different ways to transfer shares from my Zerodha account?
To learn more about delisting, see SEBI FAQ on delisting (PDF).