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CS Professional · IFSCA - Regulations, Listing and Compliances · Listing and Issuance of Securities

Kaveri Infra Ltd is listed on an exchange in GIFT IFSC. A director resigns abruptly citing differences with management. Which treatment aligns best with continuous disclosure principles?

The company should disclose the resignation to the exchange within the prescribed time, together with the reasons the director gave. A change in the board is a material event that investors need to know promptly, so annual-report disclosure or filing with the Registrar alone is insufficient.

  1. ADisclose it in the next annual report because director changes are routine
  2. BDisclose it to the exchange within the prescribed timeline along with the reasons given by the director, since it is a material eventCorrect
  3. CDisclose it only to the Registrar of Companies
  4. DDisclose it only if the director holds more than 10 percent of shares

Explanation

Changes in directors and the reasons for resignation are information investors need, so they are disclosed to the exchange within the prescribed time. Annual report timing is too late. Filing only with the Registrar does not satisfy the listing duty, and the shareholding of the director is irrelevant to the duty.

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