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What does suspension of trading in a stock mean?

Suspension of trading is basically a temporary or permanently halt in the trading of a particular stock, for a variety of reasons. Some common reasons include regulatory action, a company restructure, or major market events that impact a stock's price. When trading is suspended, it means that investors can't buy or sell shares of that particular stock until the suspension is lifted.

For ex.: If a company is going through a major restructuring or a merger, trading might be suspended to allow investors to digest the news and prevent excessive volatility in the stock price.

You can find the list of suspended stocks on the website of each exchange:

  1. [Click here](https://www.nseindia.com/regulations/listing-compliance) to know about suspended stocks on NSE.
    
  2. [Click here](https://www.bseindia.com/corporates/Susp_Comp.aspx) to know about suspended stocks on BSE.
    

 

The suspension of a company's stock may have an impact on its value, but it does not necessarily imply that the shares are worthless. It simply means that they are not permitted to trade on an exchange. The exchange may suspend a company from trading for a variety of reasons, but if the suspended company complies with all regulations, the suspension will be lifted and the shares will resume trading.

There is nothing you can do if the company is suspended and then eventually closes; you will have to write it off as a loss.