With more and more MNCs opting for delisting from the Indian stock exchanges, in times to come the Indian investor would find his once favorite stock missing.

With more than 30 MNCs opting to delist from the Indian stock exchanges, the Indian investor would have little choice among the remaining. Even though there is no dearth of companies on the stock exchange, the more important are those heavily traded companies which have created wealth to the shareholders. MNCs have enjoyed investors' confidence over the years and the returns generated by these MNCs were higher than the stock index returns. To find these companies delisting now is rather disappointing.

Companies list in the stock exchange mainly to raise capital. But the MNCs by listing in their respective countries have already realized this objective. Listing on the Indian bourses has been more to adhere to the regulatory requirement of SEBI. However, in the new liberalized economy, having an Indian subsidiary is not a requirement.

Multiple listing in different countries would require the company to adhere to standards unique to each country. It also involves pleasing shareholders of different countries who might not think in similar lines. There are also country-specific problems. Companies like Philips India had to face problems of lock-outs from the trade unions. There are also other problems like transfer of technology from the parent company to its subsidiary not being kept secret. Most of the MNCs in India are in the process of restructuring and these moves towards delisting could be seen as a step in that direction.

Delisting of MNCs: The vanishing act, Indian, company, shareholders, Philips, countries, subsidiary, economy, exchange, investor, manufacturing, market, Companies, Analyst, dilemma, capital, factor, interference, investors', controversies.