Pinki Ltd. being a listed company has not complied the requirements of listing agreement with the stock exchange. The stock exchange decided for compulsory delisting of the securities from its trading platform. Answer th

Compulsory delisting refers to permanent removal of securities of a listed company from a stock exchange as a penalizing measure at the behest of the stock exchange for not making submissions/comply with various requirements set out in the Listing agreement within the time frames prescribed. As per Regulation 22(1) of the SEBI (Delisting of Equity Shares) Regulations, 2009, a recognized stock exchange may, by order, delist any equity shares of a company on any ground prescribed in the rules made under section 21A of the Securities Contracts (Regulation) Act, 1956. Therefore, the stock exchange as a penalizing measure for not complying with various requirements set out in the Listing agreement within the time frames prescribed can go for compulsory delisting of securities of Pinki Ltd.