Skip to content

CS Executive · Capital Market and Securities Laws · Listing Obligations and Disclosure Requirements

A company whose securities are listed on a recognised stock exchange breaches the conditions of its listing agreement. Which statement is correct under the SCRA text provided?

The company must comply with the listing agreement conditions under Section 21, and failure attracts a penalty under Section 23E of not less than five lakh rupees, which may extend to twenty-five crore rupees. It is not a fixed small sum.

  1. ASection 21 requires compliance with the listing agreement conditions, and Section 23E provides a penalty of not less than five lakh rupees, extendable to twenty-five crore rupeesCorrect
  2. BSection 21 makes the breach a criminal offence with no monetary penalty
  3. CSection 23E provides a fixed penalty of one lakh rupees only
  4. DListing conditions bind only the exchange, not the company

Explanation

Section 21 obliges the person on whose application securities are listed to comply with the listing agreement conditions. Section 23E sets a penalty of at least five lakh rupees which may extend to twenty-five crore rupees for failure to comply with listing conditions.

Did you get it right without looking?

One question tells you little. A timed set on Listing Obligations and Disclosure Requirements shows your real accuracy, how long you take and where you lose marks.

Practise Listing Obligations and Disclosure RequirementsFree diagnostic mock

More Listing Obligations and Disclosure Requirements questions