Delisting of shares is a process in which the stocks listed on the bourses i.e. on stock exchanges are delisted from trading.

It means the permanent removal of shares from the stock exchanges and hence they are unavailable for trading.

Delisting is either voluntary or involuntary in nature.

Voluntary refers to the company’s discretion in delisting its stock i.e. the company decides to delist its shares from the bourses.

Involuntary delisting refers to various wrongdoings like non-compliance or violating various rules which will force the company to delist its stock.

In the 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 reaches 90% of the total share capital of the company.