Delisting
Market basicsA company removing its shares from the exchange, usually after the promoter buys out public holders.
In plain terms
Hold through a successful one and you own an unlisted share with no screen price and no easy exit.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Compulsory delisting
Regulation & taxRemoval of a company from an exchange for persistent non-compliance, with the promoters required to acquire the public shareholders’ shares at a value fixed by an independent valuer.
In plain terms
Not a sale but a recovery process, run on notices rather than on screens. The chart usually stopped months earlier, when the security was suspended.
Reverse book building
Market basicsThe price discovery process in a delisting, where public shareholders state the price at which they will sell.
In plain terms
Shareholders bid the price up rather than down. The promoter can accept or walk away.
Special situation
Fundamental analysisA corporate event — demerger, buyback tender, delisting offer, rights issue or index change — that creates a mechanical mispricing independent of business quality.
In plain terms
The terms are published, the timeline is fixed and the outcome is largely arithmetic. They persist because they are boring, small and time-limited, which keeps large funds away.