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Consider the following statements regarding Delisting of securities.
- Delisting means removing the securities of a listed company from a stock exchange.
- Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement.
- A Delisting company needs to buy back 100% of the total issued shares.
How many of the above statements are correct?
- a)Only one
- b)Only two
- c)All three
- d)None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding Delisting of securities. D...
Only statement 1 is correct.
- Delisting means removing the securities of a listed company from a stock exchange. Once delisted, the securities of that company can no longer be traded on the stock exchange.
- Delisting can be either voluntary or compulsory. In voluntary delisting, a company decides on its own to remove its securities from a stock exchange; in compulsory delisting, they are removed as a penal measure for the company not making submissions or complying with requirements set out in the listing agreement within the prescribed timeframes.
- If a company wants to delist its securities, it needs to buy back 90% of the total issued shares.
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Consider the following statements regarding Delisting of securities. D...
Statement 1: Delisting means removing the securities of a listed company from a stock exchange.
This statement is correct. Delisting refers to the process of removing the securities of a listed company from a stock exchange. When a company is delisted, its shares can no longer be traded on the exchange.
Statement 2: Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement.
This statement is incorrect. Delisting can happen for various reasons, not just as a penal measure for non-compliance with listing agreement requirements. Some common reasons for delisting include bankruptcy, merger or acquisition, voluntary delisting by the company, or failure to meet the exchange's continued listing standards.
Statement 3: A delisting company needs to buy back 100% of the total issued shares.
This statement is incorrect. While it is true that a delisting company may choose to buy back its shares, it is not mandatory for the company to buy back 100% of the total issued shares. The company may choose to buy back a portion of the shares or none at all. The decision to buy back shares depends on various factors, including the financial capability of the company and its strategic objectives.
Therefore, only statement 1 is correct. Delisting refers to the removal of securities from a stock exchange. The other statements are incorrect as delisting can happen for reasons other than non-compliance with listing agreement requirements, and it is not mandatory for a delisting company to buy back 100% of the total issued shares.
This statement is correct. Delisting refers to the process of removing the securities of a listed company from a stock exchange. When a company is delisted, its shares can no longer be traded on the exchange.
Statement 2: Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement.
This statement is incorrect. Delisting can happen for various reasons, not just as a penal measure for non-compliance with listing agreement requirements. Some common reasons for delisting include bankruptcy, merger or acquisition, voluntary delisting by the company, or failure to meet the exchange's continued listing standards.
Statement 3: A delisting company needs to buy back 100% of the total issued shares.
This statement is incorrect. While it is true that a delisting company may choose to buy back its shares, it is not mandatory for the company to buy back 100% of the total issued shares. The company may choose to buy back a portion of the shares or none at all. The decision to buy back shares depends on various factors, including the financial capability of the company and its strategic objectives.
Therefore, only statement 1 is correct. Delisting refers to the removal of securities from a stock exchange. The other statements are incorrect as delisting can happen for reasons other than non-compliance with listing agreement requirements, and it is not mandatory for a delisting company to buy back 100% of the total issued shares.
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Consider the following statements regarding Delisting of securities. Delisting means removing the securities of a listed company from a stock exchange. Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement. A Delisting company needs to buy back 100% of the total issued shares.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?
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Consider the following statements regarding Delisting of securities. Delisting means removing the securities of a listed company from a stock exchange. Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement. A Delisting company needs to buy back 100% of the total issued shares.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Delisting of securities. Delisting means removing the securities of a listed company from a stock exchange. Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement. A Delisting company needs to buy back 100% of the total issued shares.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Delisting of securities. Delisting means removing the securities of a listed company from a stock exchange. Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement. A Delisting company needs to buy back 100% of the total issued shares.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?.
Consider the following statements regarding Delisting of securities. Delisting means removing the securities of a listed company from a stock exchange. Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement. A Delisting company needs to buy back 100% of the total issued shares.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Delisting of securities. Delisting means removing the securities of a listed company from a stock exchange. Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement. A Delisting company needs to buy back 100% of the total issued shares.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Delisting of securities. Delisting means removing the securities of a listed company from a stock exchange. Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement. A Delisting company needs to buy back 100% of the total issued shares.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements regarding Delisting of securities. Delisting means removing the securities of a listed company from a stock exchange. Delisting happens only as a penal measure for the company not complying with requirements set out in the listing agreement. A Delisting company needs to buy back 100% of the total issued shares.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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