Delisting means the company delist of listed securities from the stock exchange. This delisting occurs when a company ceases operations, declares bankruptcy, failure to comply with the requirements, become private securities, merger and acquisition.
The delisting of listed securities can be divided into 2 cases:
1. Stock Exchange can order the delisting of securities of companies.
Stock Exchange can order the delisting of securities of companies that have been registered as securities if it is found that;
- Listed companies encounter operating problems that cause lower operating results.
- The company is unable to maintain all the qualifications for being a listed company as required.
- The company has violated the law on securities and the stock exchange.
- Regulations of the Stock Exchange that seriously affects benefits or investor decisions.
2. Listed companies voluntarily delist their securities.
In the case where a listed company wishes to voluntarily delist its registered securities, Listed companies must operate according to specified criteria and must receive approval from the company's shareholder meeting with a vote of not less than three-quarters of the total number of issued shares. The reason for Voluntary Delisting :
- Delisting to save money when the listed company sees that this delisting will bring more benefits with the remaining costs than staying with the stock exchange.
- Public companies may choose to delist their securities to become private.
- Merger or Acquisition When two or more companies desire to merge, they delist and complete the reorganization.
- Biocept Inc or BIOCQ stock was delisted by NASDAQ (on Oct 24, 2023) for not following listing rules or standards, transfer of registration.