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

Meera Steels Ltd is compulsorily delisted, and a person aggrieved by the exchange's delisting order wishes to challenge it. Which statement correctly describes the remedy available?

An aggrieved person may appeal to the Securities Appellate Tribunal against the delisting order within the prescribed time. The order is not final, and neither the Registrar of Companies nor a fresh application to the exchange is the statutory appeal route.

  1. ANo remedy is available, because the exchange order is final
  2. BAn appeal lies to the Securities Appellate Tribunal within the time prescribed by lawCorrect
  3. CThe appeal must be filed with the Registrar of Companies within 30 days
  4. DThe only remedy is a fresh application to the same exchange for revocation after one year

Explanation

A person aggrieved by the exchange's delisting decision may appeal to the Securities Appellate Tribunal. The order is therefore not final or unchallengeable, and the ROC is not the appellate authority. Revocation by the exchange is not the only remedy.

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