If the suspended company complies with all regulations, the exchange might revoke the suspension, and the shares will start trading again. If the company gets suspended and eventually closes, shareholders will have to write it off as a loss.
The only thing delisting does is that the stock doesn't trade on whatever exchange it got delisted from. It would still exist and you would still own it. No one is going to pay you out. It would trade over the counter.
Shares cannot trade until the suspension is lifted or expires.
When a trading halt is implemented for a listed stock, the listing exchange notifies the market that trading is not allowed in that stock for the duration of the halt. All other U.S. markets trading the stock must observe the trading halt as well, including trading that occurs off-exchange in the OTC market.
How to get rid of blocked/suspended shares? Since the blocked/suspended shares cannot be sold on the open market (stock exchanges) the only way out is to transfer them to somebody else. However, in case the shares were blocked/suspended by depositories, then transferring them to somebody else is not an option.
+Securities that are suspended, or subject to a +trading halt or interruption, may be reinstated to +quotation without a fresh application.
In a case trading in an equity shares is suspended for trading on the stock exchange up to 30 days, then the last traded price would be considered for valuation of that shares. If an equity shares is suspended for trading on the stock exchange for more than 30 days then valuation committee will decide the valuation.
Although some brokerages restrict such OTC transactions, you generally can sell a delisted stock just as you would a stock that trades on an exchange. A delisted stock can continue to trade over the counter for years, even if the company files for bankruptcy.
If your shareholder refuses to sell despite having the right, your company can use a power of attorney. Directors can enforce a sale, following specific powers outlined in the shareholders agreement or ESOP rules.
However, there is one way to claim the losses on shares which are delisted and still lying in your demat account. You can transfer these shares from your demat account through off market transaction for a very nominal price to any of your friends or relatives.
The Impact of Delisting on Investors
However, a delisted stock often experiences significant or total devaluation. Therefore, even though a stockholder may still technically own the stock, they will likely experience a significant reduction in ownership. In some cases, stockholders can lose everything.
The primary difference between delisting and trading suspension is that delisting is a permanent removal of a company's shares from a stock exchange, while trading suspension is a temporary halt in trading.
Investors, here's what to do if a stock halts
The first thing you should do is look at the code associated with the halt. When a stock halts, the exchange it's listed on will provide a code that tells investors why trading is paused. Codes include: T1: News Pending.
The most common reasons for a stock's trading being halted are as follows: Major corporate transactions (such as a merger or acquisition, restructuring, etc.) or news. Significant information (negative or positive) about the company's products or services.
The Exchange may expel or suspend and/or fine under censure and/or warn and/or withdraw any of the membership rights of a Trading Member if it be guilty of contravention, non-compliance, disobedience, disregard or evasion of any of the Bye Laws, Rules and Regulations of the Exchange or of any resolutions, orders, ...
Though delisting does not affect your ownership, shares may not hold any value post-delisting. Thus, if any of the stocks that you own get delisted, it is better to sell your shares. You can either exit the market or sell it to the company when it announces buyback.
The suspension of the shares will have an influence on its value, however, it does not exactly mean that the value of the stock will turn zero. It only results in a ban on trading in an exchange. Suspension on the shares can be revoked if the company manages to comply with all the regulations of the exchanges.
If the security cannot be sold in the market, it may be possible to dispose of the worthless security by gifting it to another person who can be related or unrelated to you. If you gift the worthless security to a family member, you will need to ensure that the person is not your spouse or minor child.
In order to reinstate trading such Suspension order need to be revoked. The process of Revocation involved submission of required documents and the pending Annual fee alongwith a Re-instatement fee decided by the Internal Committee of Stock Exchange.
The federal securities laws allow the SEC to suspend trading in any stock for up to ten trading days when the SEC determines that a trading suspension is required in the public interest and for the protection of investors.
When suspension occurs the securities are not tradeable on the exchange until they are reinstated by the exchange to quotation. Often a company's shares are suspended from quotation for months or even years (now a maximum of 2 years) before the company is either delisted or reinstated to quotation.
While the longevity of a suspension system can vary based on many factors, including driving habits or road conditions, it typically lasts for 50,000 to 100,000 miles. For many drivers, it's time to replace the suspension system's shocks or struts after seven or eight years of use.
While the school board can't undo a suspension or expulsion that's already happened, they can have it removed from your child's permanent record. Your district may have a form to fill out to request an appeal, or you may have to write a letter.
If you own securities, including stocks, and they become totally worthless, you have a capital loss but not a deduction for bad debt. Worthless securities also include securities that you abandon.