Skip to content

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

Meera, a CS student, is asked which kinds of delisting are recognised under the SEBI delisting framework. Which pairing is correct?

The correct pairing is voluntary delisting initiated by the company or its promoters and compulsory delisting carried out by the stock exchange for non-compliance. Both are recognised under the SEBI delisting framework. The Registrar of Companies does not delist securities from exchanges.

  1. AVoluntary delisting at the company's initiative and compulsory delisting ordered for non-complianceCorrect
  2. BOnly voluntary delisting, as compulsory delisting is not permitted
  3. COnly compulsory delisting, as companies cannot apply on their own
  4. DDelisting by the Registrar of Companies alone, without any exchange role

Explanation

The SEBI framework covers voluntary delisting, where the company or promoter seeks exit through an exit process, and compulsory delisting, where an exchange delists a company for default or non-compliance. The other options deny one of these routes or wrongly make the Registrar the delisting authority.

Did you get it right without looking?

One question tells you little. A timed set on Delisting of Equity Shares shows your real accuracy, how long you take and where you lose marks.

Practise Delisting of Equity SharesFree diagnostic mock

More Delisting of Equity Shares questions