Will My Old Shares Be Locked When a Delisted Company Relists ?

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If you held shares of a company before it was delisted, you might wonder whether these shares will be locked when the company relists. The answer depends on how the company is relisting.

Scenarios for Relisting & Lock-in Rules

• If the Company Relists as a Fresh IPO (Re-IPO) - 

When a company re-enters the stock market through an IPO, SEBI may apply a lock-in period to old shares. Typically, pre-IPO shares (including shares held before delisting) are locked for 6 months for non-promoters and up to 3 years for promoters.

For example, if Hexaware Ltd. was delisted in Nov 2020 and relists in Feb 2025 via an IPO, your old shares may be locked for 6 months after the listing date.

• If the Company Relists Through Direct Listing or Reverse Merger

If the company lists again without issuing new shares, there is no lock-in period, and you can sell your shares immediately.

For example, ABC Ltd. was delisted in 2019 but later merged with a listed company in 2024. If your shares got converted to the new entity’s shares, you can trade them freely without a lock-in.

• If the Company Undergoes Restructuring Before Listing

Sometimes, companies restructure (e.g., mergers, demergers, capital reduction) before relisting. 

In such cases, the lock-in period depends on SEBI guidelines and the company’s restructuring plan.

For Example: PQR Ltd. was delisted in 2018 and later restructured before relisting in 2025. The new listing terms may mention whether your shares have any lock-in period.

How to Check If Your Shares Are Locked?

• Read the IPO Prospectus (RHP/DRHP)— It will specify lock-in rules.
•  Check Company Announcements—Updates on the stock exchange will mention restrictions.
• Look for Exchange Circulars—NSE/BSE issues notices about trading rules.

If you are still unsure, you can always check with your branch or contact our customer care.