Table of Contents
If a company is delisted, you are still a shareholder, to the extent of a number of shares held. And yet, you cannot sell those shares on any exchange. However, you can sell it on the over-the-counter market. This means you can look for a buyer outside the stock exchange.
What happens to my money if stock is delisted?
When a company delists from a major exchange, shareholders still legally own their shares, even if they’re worthless in value. Generally speaking, delisting is regarded as a precursor to the act of declaring bankruptcy.
Securities trading on national exchanges, such as the New York Stock Exchange (NYSE) or the Nasdaq, can immediately resume trading when a suspension is lifted.
How do I sell shares not listed?
Employees or investors can sell the public company shares through a broker. To sell private company stock—because it represents a stake in a company that is not listed on any exchange—the shareholder must find a willing buyer. In addition, the company must approve the sale.
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.
How do I claim capital loss on delisted stock?
In case the company has gone into liquidation or the company has been referred to NCLT under IBC and the NCLT has authorised the company to extinguish the shares, you can claim the loss. Whether the shares have been extinguished or not you can verify it from your demat statement.
Hover your mouse on the stock and select ‘Options’ and click on ‘Place order’. Buyback/Takeover/Delisting orders are collected until 6:00 PM, one trading day prior to the offer end date. Ensure to hold sufficient quantities in your demat account before closure of the offer end date.
Can I transfer suspended shares?
Trading in Shares of the company is suspended. The Stock Exchange can suspend the company if it does not comply with the same. As the company shares are suspended from trading in the Stock Exchange, it will not be possible for you to trade in these shares through the Stock Exchange.
A delisted stock can theoretically be relisted on a major exchange, but it’s rare. What’s more common than a relisting is that a delisted company goes bankrupt and the delisted stock becomes worthless. The company may be acquired by a private owner out of bankruptcy or be forced to liquidate.
How do I claim tax loss on delisted stock?
You report capital losses on Form 8949, Form 1040 and Schedule D. Prepare documentation that proves the stock is worthless and establishes the approximate date on which it became worthless. You don’t have to submit this documentation with your tax return, but you will need it if the IRS audits you.