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 : (ii) What are the circumstances/conditions under which equity shares of a company cannot be delisted as per 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, - pursuant to a buyback of equity shares by the company; or Pursuant to a preferential allotment made by the company; or unless a period of three years has elapsed since the listing of that class of equity shares on any recognised stock exchange; or if any instruments issued by the company, which are convertible into the same class of equity shares that are sought to be delisted, are outstanding.

Topics: Delisting of Securities

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