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CS Executive · Capital Market and Securities Laws · Delisting of Equity Shares

After compulsory delisting, what is the position of the company's promoters and directors regarding access to the securities market?

The promoters and directors of a compulsorily delisted company may be debarred from accessing the securities market for a specified period and from becoming directors of other listed companies. This applies regardless of residency or any shareholder resolution.

  1. AThey may access the securities market from the next day for any new issue
  2. BThey are barred from accessing the securities market only if they are Indian residents
  3. CThey may be debarred from accessing the securities market for a specified period, and from becoming directors of listed companiesCorrect
  4. DThey are barred only if shareholders pass a special resolution

Explanation

The Delisting Regulations provide that promoters and directors of a compulsorily delisted company may be debarred from accessing the securities market, and can be barred from holding director positions in listed companies, for the prescribed period. Residency and shareholder resolutions are irrelevant, and no immediate access is permitted.

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