DELISTING

Subject : Economy

Context : Vedanta Resources said that, hey have failed to garner the required number of shares to delist Indian subsidiary Vedanta.

Concept :

• Delisting means the permanent removal of a stock from stock exchange.
• Share delisting is the removal of a listed stock from a stock exchange platform, and thus it would no longer be traded.
• It can be done either on voluntary decision of the company or forcibly done by SEBI on account of some wrong doing by the company.
• There are certain norms which a company needs to follow while delisting on the stock exchange. In case of voluntary delisting,
• The delisting shall be considered successful only when the shareholding of the acquirer together with the shares tendered by public shareholders
• Some companies choose to become privately traded when they identify that the costs of being publicly listed exceed the benefits.
• Reaches 90% of the total share capital of the company.