Bombay Stock Exchange Ltd. had suspended trading in shares of XYZ Ltd. for violating conditions of listing agreement. The company has now complied with the listing regulations requirements. By referring to SEBI circular/

CS Executive · Securities Laws and Capital Markets · PYQS · December 2018
Bombay Stock Exchange Ltd. had suspended trading in shares of XYZ Ltd. for violating conditions of listing agreement. The company has now complied with the listing regulations requirements. By referring to SEBI circular/regulations, discuss the criteria for suspension of the trading in the shares of the listed entities.

Answer & Explanation:

SEBI vide its Circular dated May 3, 2018, prescribed the criteria for suspension of the trading in the shares of the listed entities which are as follows: Failure to comply with respect to: board composition including appointment of woman director for two consecutive quarters; constitution of audit committee for two consecutive quarters; submission of corporate governance compliance report for two consecutive quarters; submission of the shareholding pattern for two consecutive quarters; submission of financial result for two consecutive quarters; submission of Annual Report for two consecutive financial years; submit information on the reconciliation of shares and capital audit report, for consecutive quarters; receipt of the notice of suspension of trading of that entity by any other recognised stock exchange or any or all of the above grounds.

Topics: SEBI Circulars/Regulations

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