RRR Ltd. is a listed company. It has not satisfied the requirements of listing agreement with the Recognized Stock Exchange. The Stock Exchange decided for compulsory delisting of the securities from the trading platform
CS Executive · Securities Laws and Capital Markets · PYQS · December 2023
RRR Ltd. is a listed company. It has not satisfied the requirements of listing agreement with the Recognized Stock Exchange. The Stock Exchange decided for compulsory delisting of the securities from the trading platform. In the light of SEBI (Delisting of Equity Shares) Regulations, 2021, answer the following: (d) In the case of compulsory delisted company, whether the promoter of the company can act as an intermediary in the securities market ?
Answer & Explanation:
No, if a company has been compulsorily delisted, its promoters (along with the company itself, its whole-time directors, and persons responsible for ensuring compliance with securities laws) shall not act as an intermediary in the securities market . This prohibition is for a period of ten years from the date of such delisting. This measure is intended to penalize those responsible for non-compliance leading to compulsory delisting and to protect the integrity of the securities market.
Topics: SEBI (Delisting of Equity Shares) Regulations, 2021
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