What if any company is DE-listed from exchanges and you have shares?
Do you have the shares that belong to few de-listed companies in your portfolio? If yes, this post is exclusively for you.
Before getting into the topic, I would like to give some description of what is de-listing. The process de-listing allows the company to de-list from the listed exchanges permanently.
A company should approach and follow the required rules and regulations to be eligible for de-listing.
First things first, Keeping an eye on your portfolio over time is a very much important aspect that you need to take care of as many investors have in their portfolio shares of companies that have delisted from the stock exchanges. So let’s discuss what if any company is DE-listed from exchanges and you have shares.
The stock exchanges have made it’s mandatory for such companies to accept share buy-back requests for at least one year after delisting of shares.
But after one year, investors can do nothing with their delisted shares held in physical form.
They, however, remain shareholders and are entitled to receive all dividends and bonus/rights shares issued by the company.
I suggest you to kindly contact the de-listed company (registered office) or their Registrar for more details regarding your shares.
You may get the shares transferred to your name and get the dividends (if any) etc.,
However, I have seen some brokers doing off-market transactions on unlisted shares (not sure about this though).
It is always recommended to keep an eye on your holdings and take appropriate decisions as required.
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