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

Prakash Textiles Ltd, a listed company, wants its equity shares to be permanently removed from the stock exchange so that they are no longer tradable on that exchange. Which term describes this action under the SEBI framework?

The action is delisting of equity shares. Delisting is the permanent removal of a listed company's securities from a stock exchange, after which they are no longer tradable there. Suspension is temporary, buy-back reduces share capital, and face value consolidation does not affect the listing status.

  1. ADelisting of equity sharesCorrect
  2. BSuspension of trading for one settlement cycle
  3. CBuy-back through the tender offer route
  4. DConsolidation of face value of shares

Explanation

Delisting means permanent removal of securities of a listed company from a stock exchange, so they are no longer traded there. Suspension is only temporary, a buy-back reduces capital by repurchasing shares, and consolidation only alters face value without removing the listing.

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