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

Trading in the shares of Rudra Pharma Ltd on a GIFT IFSC exchange is suspended for a short period pending clarification of a price-sensitive rumour. After the company clarifies, the exchange resumes trading. How is this suspension best characterised?

This is a temporary suspension, a market-protection measure that keeps the listing alive. Trading resumes once the issue is clarified, so there is no delisting, no unlisting of the shares and no need for a fresh listing application.

  1. AA permanent removal that required a fresh listing application
  2. BA voluntary delisting by the company
  3. CA conversion of the shares into unlisted securities
  4. DA temporary regulatory measure that leaves the listing intact and ends when trading resumesCorrect

Explanation

Suspension is a temporary halt used to maintain an orderly market. The listing continues, so no fresh application is needed once trading resumes.

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