research paper
AMITY UNIVERSITY RAJASTHAN
L.L.M 1ST SEMESTER
(AMITY LAW SCHOOL)
PROJECT TOPIC
D-LISTING OF SECURITIES
SUBJECT
CORPORATE GOVERNANCE
SUBMITTED TO SUBMITTED BY
Mr. RAHUL MISHRA PANKAJ DASHORA
D-listing of securities
Introduction - The removal of a listed security from the exchange on which it trades. Stock is removed from an exchange because the company, for which the stock is issued, whether voluntarily or involuntarily, is not in compliance with the listing requirements of the exchange.
Meaning and concept - The reasons for delisting include violating regulations and/or failing to meet financial specifications set out by the stock exchange. Companies that are delisted are not necessarily bankrupt, and may continue trading over the counter.
In order for a stock to be traded on an exchange, the company that issues the stock must meet the listing requirements set out by the exchange. Listing requirements include minimum share prices, certain financial ratios, minimum sales levels, and so on. If listing requirements are not met by a company, the exchange that lists the company's stock will probably issue a warning of non-compliance to the company. If the company's failure to meet listing requirements continues, the exchange may delist the company's stock.
Important Definitions
“Securities and Exchange Board of India (Delisting of Securities) Guidelines 2003” has been issued under section 11(1) of SEBI Act, 1992, with the objective to protect the interest of investors in the securities market.
Sec 3 (1)
(e) ‘delisting exchange’ means the exchange from which the securities of the company are proposed to be delisted in accordance with these Guidelines;
(f) ‘exchange’ means any stock exchange which has been granted recognition under section 4 of the Securities Contracts (Regulation) Act, 1956;
(g)
L.L.M 1ST SEMESTER
(AMITY LAW SCHOOL)
PROJECT TOPIC
D-LISTING OF SECURITIES
SUBJECT
CORPORATE GOVERNANCE
SUBMITTED TO SUBMITTED BY
Mr. RAHUL MISHRA PANKAJ DASHORA
D-listing of securities
Introduction - The removal of a listed security from the exchange on which it trades. Stock is removed from an exchange because the company, for which the stock is issued, whether voluntarily or involuntarily, is not in compliance with the listing requirements of the exchange.
Meaning and concept - The reasons for delisting include violating regulations and/or failing to meet financial specifications set out by the stock exchange. Companies that are delisted are not necessarily bankrupt, and may continue trading over the counter.
In order for a stock to be traded on an exchange, the company that issues the stock must meet the listing requirements set out by the exchange. Listing requirements include minimum share prices, certain financial ratios, minimum sales levels, and so on. If listing requirements are not met by a company, the exchange that lists the company's stock will probably issue a warning of non-compliance to the company. If the company's failure to meet listing requirements continues, the exchange may delist the company's stock.
Important Definitions
“Securities and Exchange Board of India (Delisting of Securities) Guidelines 2003” has been issued under section 11(1) of SEBI Act, 1992, with the objective to protect the interest of investors in the securities market.
Sec 3 (1)
(e) ‘delisting exchange’ means the exchange from which the securities of the company are proposed to be delisted in accordance with these Guidelines;
(f) ‘exchange’ means any stock exchange which has been granted recognition under section 4 of the Securities Contracts (Regulation) Act, 1956;
(g)