CHAPTER 8 SEBI (Delisting of Equity Shares) Regulations, 2021

Meaning of Delisting : “Delisting” which is totally the reverse of listing denotes removal of the securities
of a listed company from the platform of Stock Exchange. Delisting is different from suspension or
withdrawal of admission to dealings of listed securities, which is for a limited period.

On the other hand, ‘delisting’ of securities means removal of the name of the company from the stock
exchange and no trade can take place in the securities of the company delisted. Delisting of securities
can be done either by company voluntarily or by the stock exchange, compulsorily. Generally, stock
exchange, in order to impose severe punishment on companies compulsorily delists securities of a
company, as a last resort. Compulsory delisting affects reputation of company and the extent of liquidity
in trading those shares.

Types of Delisting :