DELISTING AND ITS IMPACT ON SHAREHOLDERS WEALTH: EVIDENCE FROM INDIA

This study examines the impact of the delisting of shares from the stock exchanges on shareholders' wealth. We study a sample of 127 stocks delisted from the National Stock Exchange(NSE), India, during the period 2002 to 2018. We find that shareholders of delisted stocks get a negative return of 13.89 % over the car window (-30,-1). O'Donnell (1969) and Jarrell (1984) and Sanger and Peterson (1990) found an average decline of 9% and 8.5% on the stock returns around delisting. Our results are consistent with the existing literature, which show a significant loss of shareholders' wealth. The study's finding points out the decline in shareholders' wealth and provides an evidence from the Indian Capital markets. The study's seeks the attention of regulators, policy makers and stock exchanges to manage or come out with better regulations and policies in delisting of Stocks. It also help to provide suggestions to regulators to reduce the losses incurred to the minority shareholders.