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

Orion Textiles Ltd is listed in GIFT IFSC. Its compliance officer proposes to file a required disclosure with the exchange only on the company's own website, saying that public availability satisfies the duty. The company's counsel disagrees. What is the correct view?

Counsel is right. Required disclosures must be filed with the recognised exchange, which disseminates them to the market. Posting on the company website can supplement the filing but cannot substitute for it, regardless of whether the disclosure concerns financial results or other events.

  1. ACounsel is wrong, as website publication replaces exchange filing
  2. BCounsel is wrong, because only newspaper advertisements satisfy the duty
  3. CCounsel is right only if the disclosure concerns financial results
  4. DCounsel is right, because required disclosures must be made to the recognised exchange itself; a website posting alone does not discharge the obligationCorrect

Explanation

Listing obligations run to the exchange, which disseminates information to the market. A website posting may supplement the filing but cannot replace it. Restricting the rule to financial results or to newspaper advertisements is unsupported.

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