Delisting involves the removal of listed securities of a company from a stock exchange where it is traded on a permanent basis.
Delisting curbs the securities of the delisted company from being traded on the stock exchange. It can be done either on the voluntary decision of the company or forcibly done by SEBI on account of some wrongdoing by the company. There are certain norms that a company needs to follow while listing on the stock exchange.
In case the company fails to do so, then SEBI takes action which generally leads to the delisting of the company from the stock exchange.
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