Friend, have you ever heard the term Delisting in the world of capital markets, especially stocks? For those of you who invest in the capital market, of course, they are very familiar with the term stock delisting. Investing in stocks certainly has the potential to get high returns, but there are also inherent risks, one of which is stock delisting.
In the stock market, there is a corporate action known as delisting shares, which is the official removal of an issuer on the stock exchange by the Indonesia Stock Exchange (IDX). This means that shares previously traded on the IDX will be removed from the list of public companies, so their shares cannot be traded freely in the capital market. So friends, not always stocks can be traded. Issuers that have been listed and traded on the IDX can exit or be issued if certain conditions occur in the issuer. This delisting can be voluntary ( voluntary delisting ) or forced ( force delisting ). Voluntary delisting is delisting
shares voluntarily submitted by the issuer itself for certain reasons. Usually this delisting occurs due to several reasons including the issuer stopping operations, going bankrupt, a merger occurring, does not meet the requirements of the stock exchange authority, or wants to become a closed company. Often voluntary delisting indicates the company’s financial health or poor corporate governance. In addition, delisting can also occur due to low stock trading volume. In this voluntary delisting, shareholders will receive their rights because the issuer has an obligation to absorb shares in the public at a fair price.
Next, delistingForce delisting occurs when a public company violates the rules and fails to meet the minimum financial standards set by the Exchange authority. This delisting usually occurs because the issuer does not submit financial reports, the company’s business continuity is questioned, and there is no explanation for 24 months. When the company does not comply with the rules, the IDX will issue a non-compliance warning. If this continues, the Exchange may remove the shares from the stock market.
The question is if stock investors happen to hold shares of an issuer and it turns out that the issuer is bankrupt or delisted, what will happen to him? Has the investment money gone too?
Basically, these funds can be returned to shareholders, but the process is not easy. Companies that go bankrupt and are liquidated then process must go through a court order. The trick is to sell all of its assets and the proceeds are used to meet the company’s obligations (pay debts). Furthermore, shareholders are the last parties to receive the liquidation proceeds. In practice, it is rare for liquidated funds to reach the shareholders of the issuer because generally these funds will be used to pay off the company’s debt first.
There are two things investors can do when their shares are subject to force delisting. First, Investors can sell these shares in the negotiated market, namely the market where securities are traded by negotiation or bargaining. Negotiations are carried out individually, but the buying and selling process still has to go through a securities company. The negotiating market has its own rules which of course remain under the supervision of the stock exchange.
IDX will provide an opportunity by opening a stock suspension which will be delisted within a certain time, usually a few days. However, the suspension is only opened in the negotiated market. Within that time span, investors are advised to sell shares that will be forced to be delisted. The thing that investors need to worry about is the stock that will be delisted usually troubled companies whose share prices plummeted in the negotiating market so that even if they were sold, they would not necessarily attract those who would buy.
Second, investors can let their shares. Some companies that are delisted usually remain public companies and can be reinstated even though the possibility is very small. The shares owned by the investors will still be there, it’s just that usually companies that are forced to be delisted are problematic companies and their shares have no value.
OJK as the regulator in the financial services sector has issued POJK Number 3/POJK.04/2021 concerning the Implementation of Activities in the Capital Market which aims to protect retail investors in the capital market, discipline issuers and accommodate new things as well as the development of the financial services sector industry in a holistic manner. global. One form of protection for retail investors covered by the POJK is that issuers are required to buy back ( buyback ) shares from investors if they are going to be delisted so that there is a channel/means for investors to resell their shares.
To avoid losses due to delisting Forcibly, choose shares of a company with good fundamentals from the start and if possible that are included in the Big Cap category or stocks with a market capitalization ( market cap ) of more than IDR 100 trillion because they generally provide a sense of security in investing. Before deciding to buy a particular stock, study it first by reading the company’s financial statements and studying the company’s performance from various trusted sources. Hopefully, you can be a successful investor, buddy..!!