Young Ltd. is a company incorporated under the provisions of the Companies Act, 2013. The Company is listed on National Stock Exchange since 1st January, 2017. The promoters of the Company are now exploring the possibili

CS Executive · Securities Laws and Capital Markets · PYQS · December 2020
Young Ltd. is a company incorporated under the provisions of the Companies Act, 2013. The Company is listed on National Stock Exchange since 1st January, 2017. The promoters of the Company are now exploring the possibility to voluntarily delist the Company on or before 1st October, 2019 under the SEBI (Delisting of Equity Shares) Regulations, 2009 by providing an exit opportunity to all the public shareholders. Assume that you are a legal advisor of the Company and accordingly, answer the following questions : (i) Is the Company eligible for voluntary delisting in terms of the Delisting Regulations ?

Answer & Explanation:

As per SEBI (Delisting of Equity Shares) Regulations, 2009, no company shall apply for and no recognised stock exchange shall permit delisting of equity shares of a company unless a period of three years has elapsed since the listing of that class of equity shares on any recognised stock exchange. In the given case, Young Limited was listed on 1st January 2017 and the period of three years has not elapsed hence, the company is not eligible for voluntary delisting.

Topics: Delisting of Securities

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