Critically examine the following: A Company may request some recognised stock exchange to delist any security, but certain conditions have to be complied in case no exit opportunity is given.

Examination: The statement is correct. Regulation 6 of the SEBI (Delisting of Equity Shares) Regulations, 2009 prescribes that a company may delist its equity shares from one or more recognised stock exchanges where they are listed and continue their listing on one or more other recognised stock exchanges, if after the proposed delisting the equity shares would remain listed on any recognised stock exchange which has nationwide trading terminals. In such a scenario, no exit opportunity needs to be given to the public shareholders. The procedure for delisting where no exit opportunity is required is as follows: The proposed delisting shall be approved by a resolution of the board of directors of the company in its meeting. The company shall give a public notice of the proposed delisting in at least one English national daily with wide circulation, one Hindi national daily with wide circulation and one regional language newspaper of the region where the concerned recognised stock exchanges are located. The company shall make an application to the concerned recognised stock exchange for delisting its equity shares. The fact of delisting shall be disclosed in the first annual report of the company prepared after the delisting. The public notice shall mention the names of the recognised stock exchanges from which the equity shares of the company are intended to be delisted, the reasons for such delisting and the fact of continuation of listing of equity shares on recognised stock exchange having nationwide trading terminals. An application for delisting shall be disposed of by the recognised stock exchange within a period not exceeding thirty working days from the date of receipt of such application complete in all respects. Thus, a company can delist without providing an exit opportunity, provided it continues to be listed on another exchange with nationwide trading terminals and complies with the specified conditions.