India's stock market has experienced a long bull market spanning over 20 years, with yesterday's closing index at 81,355.84 points. The reason for the bullish trend in India's stock market is their delisting of a large number of poorly performing stocks. Only by cleaning up the junk stocks can the stock market maintain a healthy bull run.

From 1996 to the present, nearly 3,000 companies have been delisted from the Indian stock market, with an average of over 100 companies delisted each year. The number of stocks delisted each year accounts for more than half of the IPOs of that year. This means that for every two companies that go public, one company is delisted.

The rise of India's stock market has promoted the country's economic development. Currently, India's economy ranks fourth in the world, after the United States, China, and Japan. The long-term healthy bull market in India has provided strong support for economic development.

Over 27 years, the Indian stock market has seen a significant increase, with a total of 2,869 delisted companies, accounting for as much as 54% of the total. These figures indicate that delisting is quite common in the Indian stock market.

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Delisting in the Indian stock market is divided into voluntary delisting and mandatory delisting. For companies that voluntarily delist, the stock exchange appoints a professional team to assess the assets of the delisting company and then sets an appropriate price. This allows the voluntarily delisting company to repurchase the shares held by investors with money, thus plugging the loophole for malicious delisting.

The delisting process in the Indian stock market is fast. Once the stock exchange deems it necessary for a listed company to delist, the delisting procedure takes effect immediately after a 15-day appeal period, following the resolution passed by a specialized group, ensuring the speed and effectiveness of the delisting process.

For stocks of companies that are mandatorily delisted, the Indian stock exchange appoints an independent evaluation team to assess the stocks of the delisted companies. It requires the delisted companies to repurchase all the shares held by shareholders at the assessed price within three months; otherwise, they will face penalties.

This mechanism aims to protect the interests of investors, ensuring that their rights are truly protected during the delisting process, thereby safeguarding the rights of public investors.

For companies that choose to voluntarily delist, the company will set a minimum repurchase price and then notify all shareholders to participate in the bidding. Public shareholders participating in the bidding can offer a selling price higher than the company's minimum repurchase price. The listed company can independently decide whether to repurchase shares at the price determined by the inquiry.

If, after six months, the number of shares repurchased by the voluntarily delisting company does not reach more than 90% of the publicly held shares, then the company's voluntary delisting is declared a failure. This mechanism, through the inquiry process, helps to protect the interests of investors and ensures that their rights can be effectively protected during the voluntary delisting process.As of the close on July 26th of this year, there have been 47 stocks in the A-share market that have been determined to delist, including 45 A-shares and 2 B-shares. Among them, 33 stocks were delisted due to their share prices being below 1 yuan for 20 consecutive trading days, accounting for about three-quarters of all delisted companies. ST Shen Tian is the first A-share stock to delist with a market value below 300 million yuan!

The number of newly listed companies in the A-share market over the past five years is as follows: 203 new listings in 2019; 399 new listings in 2020; 520 new listings in 2021; 428 new listings in 2022; and 313 new listings in 2023. Currently, there are more than 5,300 listed companies in the A-share market. Among these companies, some have been listed through packaging. At least 500 to 1,000 stocks will eventually be cleared out. The delisting compensation mechanism in the A-share market should also be resolved as soon as possible; it cannot be simply delisted without further action!

The long-term bull market in the Indian stock market, with a large number of junk stocks being delisted, is an important factor. It is hoped that the A-share market can also follow the example of India, improving investors' confidence in holding stocks after the clearance of unqualified stocks, and ushering in a super bull market for the A-shares.

The above is only my personal opinion and should not be taken as investment advice. Any actions taken based on this information are at your own risk, with profits and losses being your own responsibility.