What is the process for delisting a company from NSE/BSE?

Delisting from NSE/BSE means removing a company's shares from stock exchanges, making them unavailable for trading. The process can be voluntary or compulsory and must follow SEBI regulations to ensure transparency and shareholder protection.

1. Types of Delisting

Companies can be delisted in two ways:

• Voluntary Delisting: When a company chooses to remove its shares from the stock exchange.
• Compulsory Delisting: When NSE/BSE forces a company to delist due to regulatory non-compliance.

2. Process for Voluntary Delisting

A company must follow SEBI’s delisting regulations:

1. Board Approval: The board of directors must approve the delisting proposal.
2. Shareholder Approval: A special resolution must be passed with two-thirds shareholder approval.
3. Reverse Book Building: The company offers an exit price through bidding.
4. SEBI and Stock Exchange Approval: The proposal is submitted for regulatory approval.
5. Payment & Delisting: Once payments are settled, the shares are delisted.

3. Process for Compulsory Delisting

In case of regulatory violations, NSE/BSE may enforce delisting:

• Notice Issued: The exchange warns the company about non-compliance.
• Final Notice: If violations continue, a final warning is issued.
• Delisting Order: NSE/BSE formally delists the company.
• Exit Offer: Promoters must buy shares from public investors.

4. What Happens After Delisting?

After delisting, investors can:

• Sell shares to promoters at the exit price.
• Trade in the unlisted market (OTC).
• Participate in future buyback programs.

5. Conclusion

Delisting is a significant event for companies and investors. Whether voluntary or compulsory, following SEBI regulations ensures a smooth transition and fair exit options for shareholders.