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

Apex Textiles Ltd, whose equity shares are listed on a recognised stock exchange, decides to remove its shares from trading on that exchange so that the shares can no longer be bought or sold there. What is this process called under SEBI's capital market framework?

The process is called delisting of equity shares. It means permanently removing a listed company's securities from a recognised stock exchange so they can no longer be traded there. It differs from temporary suspension, buy-back or forfeiture, which do not end the listing.

  1. ADelisting of equity sharesCorrect
  2. BSuspension of trading for a fixed period
  3. CBuy-back of equity shares
  4. DForfeiture of equity shares

Explanation

Delisting means permanently removing the securities of a listed company from a recognised stock exchange, so they are no longer traded there. Suspension is only temporary, buy-back is the company repurchasing its own shares, and forfeiture is cancellation of shares for non-payment of calls.

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