Statutory Basis
Section 21A of the Securities Contracts (Regulation) Act, 1956
Delisting is governed at the primary legislation level by Section 21A of the Securities Contracts (Regulation) Act (SCRA), 1956, which empowers a recognised stock exchange to delist securities on prescribed grounds, subject to giving the company a reasonable opportunity of being heard. SEBI's 2021 Regulations operationalise this provision by prescribing the detailed procedure, pricing mechanism, and shareholder-protection safeguards for voluntary delisting initiated by a company's promoters.
- SCRA, 1956 is the parent act for regulating stock exchanges and contracts in securities; Section 21 deals with listing conditions, Section 21A specifically with delisting.
- An aggrieved company or investor may appeal a stock exchange's delisting decision to the Securities Appellate Tribunal (SAT) within 15 days.
- Delisting is distinct from the Companies Act, 2013 mechanism for minority shareholder squeeze-out, which operates through share capital reduction/buyback provisions rather than the SEBI delisting route.
● Tracked since August 01, 2026 · last seen September 25, 2026 · updates as the daily brief publishes
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