ESOP Meaning in Share Market | How Delisted Stocks Helps With ESOP Shares?

21 Aug, 2023, Blog

Author: Delisted Stocks Team

Unlisted Shares | Employee Stock Ownership Plan

ESOP or Employee Stock Ownership is when a company’s employees own shares in that company. The employees secure these offers through an offer choice arrangement. ESOP was established in 1974 and has expanded greatly since then. ESOPs offer a long-term benefit to their employees- they can help build significant wealth as the shares increase over time. They also offer tax and investment benefits since ESOPs are tax-exempt trusts. They also allow both instant and gradual ownership transition. This means that it allows the current owner to decide if they want to sell all ownership at once or if they want to shift gradually over time. Typically, the vested balance from a person’s ESOP can only be cashed out if they retire, end employment, die or become disabled.

 

An important aspect of all stock exchanges is Delisted stocks. Delisted stocks are stocks that are permanently removed from the stock exchange. It can be voluntary as well as involuntary. In involuntary delisting, a company willingly decides to remove its shares and then pays the shareholders to return the shares back. In case of involuntary delisting, it is caused due to bankruptcy, failure to maintain requirements set by the exchange, and mergers, etc.

 

In the case of delisted stocks, the shareholder still owns the same percentage of the company as before and is free to sell those shares to any willing buyers. This means that even if a company’s stock gets delisted, the investor still owns that stock and can trade in the security. That’s where the company Delisted stocks comes in. Delisted stocks is a Mittal securities initiative that gives advice on where to sell, buy and rent delisted or unlisted shares. The company’s main aim is dealing in delisted, unquoted, non-traded unlisted shares/stocks and securities. They help investors whose wealth is trapped in delisted companies by finding them an appropriate buyer.

 

The site helps investors in the following ways-

 

  1. It helps find a good price for an investor for their delisted holdings.
  2. Recommends multi-bagger stocks
  3. Provides daily updates about all news related to unlisted shares
  4. Helps in liquidating ESOP shares
  5. Helps resolve IEPF shares
  6. Provides updates on price on Delisted shares

 

In conclusion, delisted stocks rate as number one for investors who wish to buy or sell unlisted sharespre IPO and ESOP. It offers a complete list of unlisted shares and their prices for buyers to choose from. It offers advice on where to invest, various companies and stocks, the amount of risk involved, and what returns can be expected by the investor. It also urges the investor to consider all risks and problems involved in stocks before investing. Hence, the site proves to be a one-stop-shop for all investor needs and requirements.