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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. You will be able to encash the value of your shares if you are able to find a willing buyer for your shares.
What happens when share trading is suspended?
A stock can be suspended from the exchanges due to non-compliance with regulations. Once suspended, the stock is no longer traded on the exchanges. Suspended stocks held by you will not be visible on Kite but you can check them on Console.
How long is trading suspended?
The halt, which can happen a few times a day per security if FINRA deems it, usually lasts for one hour, but is not limited to that. Trading halts can happen any time of day.
Originally Answered: What happens to our stock if the company goes private? There are many companies that are private and people still hold the stock of that company. So even if the company becomes private you can still hold the shares.
What is the difference between trading halt and suspension?
The Difference Between a Halt or Delay and a Suspension Securities exchanges have the power to temporarily halt, in the middle of the trading day, or delay, at the beginning of the trading day, trading on a stock. As opposed to suspensions, which can last two weeks, halts and delays usually last less than one hour.
Is it legal to restrict trading?
Stock brokerages have always had restrictions on what stocks and other securities they will accept trades for, there’s no question that it’s legal in general.
Of course, it is possible to sell a share in National Stock Exchange that was bought in Bombay Stock Exchange. But then there is a condition attached. You cannot sell the share in NSE if you have brought it on BSE in a single day. This would be clearer when I explain to you with the help of an example.
How do arbitrageurs use the NSE and BSE?
Suppose you buy a stock at 100 at NSE and sell the same stock at 101 at BSE. When the price difference comes lower that 1 (101-100), sell on NSE and buy on BSE. When the difference is less than 1, you make profits. That is how arbitrageurs use it.
What happens when a stock is suspended from the exchanges?
A stock can be suspended from the exchanges due to non-compliance with regulations. Once suspended, the stock is no longer traded on the exchanges. Suspended stocks held by you will not be visible on Kite but you can check them on Console.
How do I know if a stock has been suspended?
You can check the list of suspended stocks on each exchange’s website: The suspension of a company’s stock may have bearing on its value but it doesn’t necessarily mean that the value of the shares is zero. It only means they are not allowed to trade on an exchange.