How critical is the issue of delisting of shares from stock exchanges by Indian companies?
As observed by the Sebi-appointed committee, delisting of shares has created uneasiness amongst investors. The ministry of finance has discussed this issue with Sebi and the possible negative impact on the securities market. There are more companies today which seek delisting from stock exchanges due to various factors. In which ways in can a company delist its shares from a stock exchange? There are several methods to delist from the Indian stock exchanges. Companies may upon request get voluntarily delisted from any stock exchange other than the regional stock exchange for the company, following the delisting guidelines. In such cases, the companies are required to obtain prior approval of the holders of the securities sought to be delisted, by a special resolution at a General Meeting of the company. The shareholders will be provided with an exit opportunity by the promoters or those who are in the control of the management. Companies can get delisted from all stock exchanges follow
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