What happens when a stock is suspended?
What happens when a stock is suspended? Find a clear answer in this FAQ by 021 Trade.
When a stock is suspended, trading in that stock is temporarily stopped on the stock exchange. This means investors cannot buy or sell the shares during the suspension period.
A stock may be suspended for several reasons, such as the company failing to comply with listing requirements, not submitting financial results on time, or due to regulatory concerns. In some cases, suspension may also occur during major corporate actions like mergers or acquisitions.
If you hold a suspended stock, the shares will remain in your demat account, but you will not be able to trade them until the exchange lifts the suspension. This may create uncertainty and could affect the stock’s value once trading resumes.
You can check the list of suspended stocks on the websites of the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).
