Last reviewed 9 October 2026. General information on SEBI's delisting framework. Check the specific company's delisting announcement for the terms that apply to you.
What delisting means
Delisting is the permanent removal of a company's shares from a stock exchange. After it, the shares can no longer be bought or sold through NSE or BSE. The company carries on, your shares carry on, and you remain a shareholder with the same rights to dividends and to vote. What disappears is the market: the easy way to find a buyer and the live price that came with it.
In practice, that makes a delisted share an unlisted share with a history. It moves the same way, by off-market transfer between demat accounts, and faces the same problem of finding a buyer, usually more acutely.
Voluntary and compulsory delisting
| Voluntary delisting | Compulsory delisting | |
|---|---|---|
| Who decides | The promoters or an acquirer, who want to take the company private | The stock exchange, as a penalty |
| Why | Consolidating ownership, cutting compliance cost, a strategic sale | Persistent non-compliance, such as not filing results or not paying listing fees |
| Exit for the public | An offer to buy the public's shares at a price discovered through the delisting process | Promoters must buy the public's shares at a fair value set by an independent valuer |
| After delisting | Remaining holders can usually tender at the final price for one year | Promoters and the company are barred from the securities market for a period |
A voluntary delisting only goes through if enough public shareholders accept the offer. If it fails, the company stays listed.
Ways to exit
1. The exit window after a voluntary delisting
If you did not tender during the delisting offer, you can usually still sell to the acquirer at the final delisting price for one year from the date of delisting. Your broker or the registrar can tell you how to tender. This is normally the best price a remaining holder will see, so check the dates first.
2. The promoter buyback after a compulsory delisting
Promoters are required to buy shares from public shareholders at a fair value determined by an independent valuer. In practice, recovering that value can be slow where the promoters were already in breach of their obligations.
3. A private off-market sale
Once any exit window has closed, the remaining route is a private sale to a willing buyer, settled by off-market transfer like any unlisted share sale. Demand for delisted shares is thin: expect a sale to take longer and to be priced at a discount to any recent valuation.
4. A later buyback, merger or relisting
Some delisted companies later buy back shares, merge into another company or return to the market. None of these can be counted on.
Checking a company's status
Before you plan a sale, establish where the shares stand:
- Search the company on the NSE and BSE websites; a delisted company's page shows the delisting date and reason.
- Read the delisting offer letter or public announcement for the exit price and window.
- Check the company's status on the Ministry of Corporate Affairs portal: active, struck off or under insolvency. A struck-off or liquidated company changes the picture entirely.
- Confirm the shares are in your demat holdings and not locked or frozen.
Tax
Once delisted, shares are taxed as unlisted shares. A gain is long-term only if you held the shares for more than 24 months, and is then taxed at 12.5% without indexation. A shorter holding is taxed at your slab rate. Shares tendered in a delisting offer through the exchange mechanism bear securities transaction tax and may be treated as a listed-share sale. See the taxation guide.
Frequently asked questions
Do I lose my shares if a company is delisted?
No. You still own them and they stay in your demat account. Delisting ends trading on the exchange; it does not cancel the shares or end the company.
Can I sell shares after a company has been delisted?
Yes, through a private off-market transfer to a willing buyer, or, after a voluntary delisting, by tendering them to the acquirer during the one-year exit window. Buyers for delisted shares are scarce, so a sale can take time and may be at a steep discount.
What is the exit window after a voluntary delisting?
Shareholders who did not tender in the delisting offer can usually sell to the acquirer at the final delisting price for one year after the shares are delisted.
What happens in a compulsory delisting?
The exchange removes the shares as a penalty, typically for persistent non-compliance. The promoters are required to buy back the public's shares at a fair value fixed by an independent valuer, and the company and its promoters are barred from the securities market for a period.
How are delisted shares taxed?
As unlisted shares: a gain is long-term only after more than 24 months, taxed at 12.5% without indexation; a shorter holding is taxed at your slab rate. The holding period counts from when you originally bought the shares.