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

Zephyr Renewables Ltd, an Indian-promoted company, has its equity shares listed on an international exchange in GIFT IFSC. Its board proposes to voluntarily delist the shares. Which statement best describes the position of the delisting as a concept under the IFSCA framework?

Delisting is the permanent removal of a company's securities from an exchange so that they can no longer be traded there. It is not a winding up, not a one-day halt, and does not convert securities into debentures.

  1. ADelisting means removal of securities from the trading platform of the exchange, so they are no longer tradable on itCorrect
  2. BDelisting means the company is wound up and its registration is cancelled
  3. CDelisting means only a temporary halt in trading for one trading day
  4. DDelisting means the securities are converted into unlisted debentures automatically

Explanation

Delisting is the permanent removal of securities from the exchange, ending trading on that platform. It is different from suspension, which is temporary, and it does not mean the company ceases to exist.

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