What does delisting mean?

Delisting is when a company removes it’s shares from a stock exchange. This means that the shares are no longer traded on the exchange.

Why does a company get delisted?
There could be multiple reasons for a company to get delisted such as Financial difficulties, Regulatory issues, Legal problems etc.

What happens to delisted shares?

• Delisted shares can still be traded, but only through dealers in the Over-the-Counter (OTC) network
• OTC markets are decentralized and have less regulatory oversight than traditional exchanges
• Delisted shares may be more volatile and have lower trading volumes
• Delisted shares may be difficult to sell and may not fetch a good value

What is the impact on shareholders?
Delisting can be a significant event for investors
Delisted companies may not adhere to the same reporting and corporate governance standards as listed companies

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