Page 3 - Delisting Of Shares

Little hope for investors in stocks delisted by exchanges

When a stock exchange delists companies, it is not exactly good news for investors holding shares of these firms because there is little hope that they will get some value for their holdings. Recently, the National Stock Exchange of India, or NSE, delisted 19 companies including Deccan Chronicle Holdings, Koutons Retail India and Ankur Drugs and Pharma. While there are regulations in place to help the shareholders of these companies, there's little hope that investor may benefit."Most of these company had corporate governance issues. Some of them were heavily in debt. Only in very few cases, there's hope for investors to get some money back. But that will be through a long process," says. Umesh Mehta, head of research, Samco Securities.Experts say that when an exchange delists a company; it is usually because it has violated listed agreement. The exchange has to finally take the step after the companies don't comply with the norms despite repeated follow-ups. "The move is initiated ..