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

Sagar Logistics Ltd, listed in GIFT IFSC, fails to file a required periodic report by the due date. What is the likely consequence under the listing framework?

The exchange can take action for the delay, such as charging fees or penalties, and persistent default can lead to escalation under the listing rules and IFSCA's powers. It is not automatically condoned, does not trigger instant delisting, and does not fall only on the auditor.

  1. ANo consequence, as late filing is always condoned
  2. BAutomatic delisting on the next day
  3. CThe exchange may take action such as levying fees or penalties and, for continued default, escalate under the listing rules and IFSCA's powersCorrect
  4. DOnly the auditor is liable and the company is not

Explanation

Non-compliance exposes the entity to graded action by the exchange and IFSCA, such as fines and further measures for persistent default. Automatic next-day delisting is not the graded response, late filing is not condoned automatically, and liability is not limited to the auditor.

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