Sebi -
DELISTING OF SECURITIES.
1. What is meant by delisting of securities?
The term "delisting" of securities means - permanent removal of securities of a listed company from a stock exchange. - Delisting may be – compulsory or – voluntary
2. What is the consequence of delisting?
- the securities of that company would no longer be traded at that stock exchange.
3. What is Compulsory delisting?
- It is a penalizing measure at the behest of the stock exchange - for not making submissions/comply with various requirements - set out in the Listing agreement within the time frames prescribed.
4. What is the difference between voluntary delisting?
In voluntary delisting, a listed company decides on its own - to permanently remove its securities from a stock exchange.
5. What is the exit opportunity available for investors in case a company gets delisted?
SEBI (Delisting of Securities) Guidelines, 2003 provide an exit mechanism, whereby - the exit price for voluntary delisting of securities is determined - by the promoter of the concerned company - which desires to get delisted, - in accordance to book building process.
- The offer price has a floor price, - which is average of 26 weeks average of - traded price quoted on the stock exchange where - the shares of the company are most frequently traded - preceding 26 weeks from the date public announcement is made.
There is no ceiling on the maximum price
None: In case of infrequently traded securities, - the offer price is as per Regulation 20 (5) of SEBI (Substantial Acquisition and Takeover) Regulations.
For this purpose, infrequently traded securities is determined in the manner as provided in Regulation 20 (5) of SEBI (Substantial Acquisition and
1. What is meant by delisting of securities?
The term "delisting" of securities means - permanent removal of securities of a listed company from a stock exchange. - Delisting may be – compulsory or – voluntary
2. What is the consequence of delisting?
- the securities of that company would no longer be traded at that stock exchange.
3. What is Compulsory delisting?
- It is a penalizing measure at the behest of the stock exchange - for not making submissions/comply with various requirements - set out in the Listing agreement within the time frames prescribed.
4. What is the difference between voluntary delisting?
In voluntary delisting, a listed company decides on its own - to permanently remove its securities from a stock exchange.
5. What is the exit opportunity available for investors in case a company gets delisted?
SEBI (Delisting of Securities) Guidelines, 2003 provide an exit mechanism, whereby - the exit price for voluntary delisting of securities is determined - by the promoter of the concerned company - which desires to get delisted, - in accordance to book building process.
- The offer price has a floor price, - which is average of 26 weeks average of - traded price quoted on the stock exchange where - the shares of the company are most frequently traded - preceding 26 weeks from the date public announcement is made.
There is no ceiling on the maximum price
None: In case of infrequently traded securities, - the offer price is as per Regulation 20 (5) of SEBI (Substantial Acquisition and Takeover) Regulations.
For this purpose, infrequently traded securities is determined in the manner as provided in Regulation 20 (5) of SEBI (Substantial Acquisition and