A company's shares may no longer be traded on the Indonesia Stock Exchange. This is known as stock delisting, and investors should pay attention to such changes because they can affect share ownership.

So, what exactly is stock delisting, and why can a company experience it? Read this article to find out, so you can stay more alert before making decisions about your portfolio.

What Is Stock Delisting?

Stock delisting is the removal of a company's shares from the exchange, meaning they are no longer listed for trading on the IDX. The OJK also distinguishes delisting from suspension: suspension only temporarily halts trading while the shares remain listed.

Why Can a Stock Be Delisted?

A stock can be delisted because the company voluntarily requests it, or because the exchange removes it after the company no longer meets applicable regulations. In other words, the cause may come from the company's own decision or from conditions that make its shares fail to meet exchange requirements.

Voluntary vs. Forced Delisting

Both types have different processes and conditions. Here is a comparison:

Aspect	Voluntary	Forced
Party initiating	Company	Exchange
Cause	Company's decision or consideration	Company fails to meet exchange regulations
What investors should note	The company's reasons and plans after delisting	The company's condition and risks to share ownership

How Does Delisting Affect Shareholders?

Once delisted, shares are no longer traded on the exchange as before. This can make them harder to sell and increase liquidity. Investors should therefore be aware of these risks before making further decisions.

Can Delisted Shares Still Be Sold?

Whether delisted shares can be sold depends on the type of delisting, the process followed, and the applicable mechanisms. Investors should monitor official announcements from the company, the exchange, and related parties to understand the status and available options.

How Should Investors Respond to Stocks at Risk of Delisting?

If a stock is at risk of delisting, take these steps to understand the situation:

• Monitor Official Information: Follow the company's disclosures and exchange announcements;

• Evaluate the Company's Condition: Look at its fundamentals and the reasons behind the delisting risk;

• Avoid Rumors: Do not make decisions based on speculation or unverified information.

How to Reduce Risk from Troubled Stocks

These steps can help you manage your portfolio, especially when dealing with delisted stocks:

• Diversification: Spread funds across several stocks or sectors to reduce risk;

• Watch Liquidity: Choose stocks with sufficient trading activity so they are easier to buy and sell;

• Check the Company's Condition: Review its financial health and disclosures before buying;

• Use Trusted Sources: Leverage information and transaction services from Mandiri Sekuritas to help monitor stocks and make decisions.

Understand Delisting Risk Before You Invest

Understanding stock delisting helps investors see that investing is not just about chasing profits. The issuer's condition and the sustainability of its listing should also be part of your considerations before making decisions.

So, monitor the issuer's condition and official information regularly. To support your investment activities and stock transactions, take advantage of Mandiri Sekuritas services so your decisions are more focused. Let's start investing more wisely with Mandiri Sekuritas!

FAQ

1. Do delisted shares automatically become worthless?

Not always. Their value and marketability depend on the company's condition and the mechanisms after delisting.

2. What is the difference between delisted and suspended shares?

Suspended shares are still listed on the exchange, but trading is temporarily halted. Delisted shares, on the other hand, are no longer listed.

3. Do investors still receive dividends if a company is delisted?

Not necessarily. Dividend distribution depends on the company's decision and conditions after delisting.

4. How can I identify stocks at risk of delisting?

Monitor the issuer's disclosures and official announcements from the Indonesia Stock Exchange regarding the company's status and condition.