Sage-Tips

What happens to the shares of a company that has been liquidated in India?

If it is liquidating, the company is out of business and its shareholders are almost certainly out of luck. If it is trying to stave off liquidation, it may possibly make a comeback and, if it does, its stock value could come back with it. It depends on the legal process that the company undergoes.

What is delisting of shares in India?

Delisting of shares is when the shares of a listed company have been removed from the stock exchange for any form of trade. Essentially, what happens when a stock is delisted is that it will no longer be traded on stock exchanges – National Stock Exchange (NSE) or Bombay Stock Exchange (BSE).

What happens to a stock when a company goes bankrupt?

‘Bankruptcy’ generally occurs when a company’s debt is greater than it’s assets. Since the value of the shareholders’ investments is (simplistically) assets minus liabilities, if liabilities are greater than assets, the shareholders have no remaining value. However the stock becomes worthless and you can’t sell it.

Can insurance companies go bankrupt in India?

The regulator IRDA in India, watches this number very closely to ensure that the insurer is able to pay all claims that are expected. However there are unexpected and catastrophic events that can and have lead to insurance companies going bankrupt. However that has not happened in India yet.

What to do if your stockbroker goes bust or bankrupt?

In case your stockbroker goes bust or bankrupt, all you need to do it file a claim with complete details of your Demat and trading account, and corresponding action will be taken up by the depository (CDSL or NSDL). Let’s talk about different security checkpoints placed for you, as retailed traders and investors:

What happens to common stockholders when a company files for insolvency?

The common stockholders’ shares may reduce in value as the restructuring under insolvency affects the company’s share price. Also, since all other creditors and lenders will have more preference over the restructuring terms, the stock value after the reorganization may also get terribly hit.