Critically examine the following: A listed entity shall not be allowed to change its name more than once.
CS Executive · Capital Markets & Securities Laws · PYQS · December 2017
Critically examine the following: A listed entity shall not be allowed to change its name more than once.
Answer & Explanation:
Answer 6(c) False. As per regulation 45 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, listed entity is allowed to change its names more than once in its life time but listed entity cannot change where a time period of at least 1 year has elapsed from the last name change; Listed entity has to comply with following additional conditions: at least fifty percent of the total revenue in the preceding one year period has been accounted for by the new activity suggested by the new name; or the amount invested in the new activity/project is atleast fifty percent of the assets of the listed entity. Provided that if any listed entity has changed its activities which are not reflected in its name, it shall change its name in line with its activities within a period of six months from the change of activities in compliance of provisions as applicable to change of name prescribed under Companies Act, 2013.
Topics: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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