MCQs on SEBI (Delisting of Equity Shares) Regulations, 2009

Q.1:- The procedure for delisting of shares includes:

• the proposed delisting shall be approved by a resolution of the board of directors of the company in its meeting.
• the proposed delisting shall be approved by a special resolution in the meeting of the shareholders.
• the proposed delisting shall be approved by an ordinary resolution in the meeting of the shareholders.
• None of the above

Q.2:- The provisions of SEBI (Delisting of Equity Shares) Regulations 2009 are not applicable on:

• Securities listed without making a public issue, on the institutional trading platform of a recognised stock exchange
• Securities issued under Preferential issue category
• Securities issued to the banking and financial institutions
• Securities issued to the Qualified Institutional Buyers

Q.3:- A company may apply for delisting of its equity shares to the stock exchange(s) where it is listed, subject to the condition that:

• The company’s Board of Directors are fully authorised to make an application for delisting.
• The concerned equity shareholders should be given an exit opportunity.
• There is no need to ask such equity shareholders.
• None of the above.

Q.4:- The company shall disclose the fact of delisting in the:

• Only during the course of the EGM
• Only during the course of the AGM.
• First annual report of the company prepared after the delisting
• None of the above

Q.5:- The escrow account shall consist of:

• Bank guarantee in favour of the merchant banker
• Cash deposited with a scheduled commercial bank
• As per the instruction of stock exchange with whom the delisting applications has been filed.
• Either A or B

Q.6:- All the shareholders whose equity shares are verified to be genuine shall be paid the final price stated in the public announcement from the closure of the offer:

• within ten working days
• within ten days
• within seven working days
• within seven days

Q.7:- For delisting of shares by the small companies, one of the condition is:

• Paid up capital not exceeding ten crore rupees and net worth not exceeding twenty five crore rupees as on the last date of preceding financial year
• Paid up capital not exceeding five crore rupees and net worth not exceeding twenty five crore rupees as on the last date of preceding financial year.
• Paid up capital not exceeding twenty crore rupees and net worth not exceeding twenty five crore rupees as on the last date of preceding financial year
• Paid up capital not exceeding fifteen crore rupees and net worth not exceeding twenty five crore rupees as on the last date of preceding financial year

Q.8:- Any public shareholder who could not exercise the exit option and still holding equity shares may tender his shares to the promoter from the date of delisting:

• up to a period of at least one year
• up to a period of at least six months
• up to a period of at least two years
• up to a period of at least one and half years

Q.9:- In case of exit option, the date of opening of the offer shall not be later than from the date of the public announcement:

• ten working days
• seven days
• ten days
• seven working days

Q.10:- “Compulsory delisting” means:

• De-registration of equity shares of a company from the register by the Registrar of Companies
• Delisting of equity shares of a company by a recognised stock exchange
• Debar the name of company so that it cannot be listed in any of the stock exchanges
• None of above

Q.11:- “voluntary delisting” means:

• delisting of equity shares of a company voluntarily on an application made by the promoter.
• delisting of equity shares of a company voluntarily on application of the company itself
• delisting of equity shares of a company voluntarily on an application made by the majority of the shareholders.
• None of the above

Q.12:- No promoter or promoter group shall propose delisting of equity shares of a company, if any entity belonging to the promoter or promoter group has sold equity shares of the company during a period of __________prior to the date of the board meeting in which the delisting proposal was approved:

• Three months
• Twelve months
• Nine months
• Six months

Q.13:- Where a company has been compulsorily delisted, the company, its whole time directors, its promoters and the companies which are promoted by any of them shall not directly or indirectly access the securities market or seek listing for any equity shares for a period of from the date of such delisting:

• seven years
• three years
• ten years
• five years

Q.14:- In case of exit option, the offer shall remain open for a period of ________, during which the public shareholders may fender their bids:

• Five days
• Three days
• Five working days
• Three working days

Q.15:- The acquirer or promoter shall dispatch the letter of offer to the public shareholders of equity shares, (in case of exit option) not later than from the date of the public announcement:

• Two working days
• Four working days
• One working day
• Three working days

Q.16:- How much amount should be deposited in the escrow account:

• Total estimated amount of consideration calculated on the basis of floor price and number of equity shares outstanding with public shareholders.
• Total estimated amount of consideration calculated on the basis of market price of the day when delisting was applied for and number of equity shares outstanding with public shareholders.
• Total estimated amount of consideration calculated on the basis of floor price and number of equity shares outstanding with promoter shareholders.
• None of the above

Q.17:- An application seeking in-principle approval for delisting shall be disposed of by the recognised stock exchange within a period not exceeding _______from the date of receipt of such application complete in all respects:

• Seven working days
• Three working days
• Ten working days
• Five working days

Q.18:- “public shareholders” means the holders of equity shares, other than the:

• Holders of depository receipts issued overseas against equity shares held with a custodian and such custodian
• Promoters
• Both A and B are correct.
• None of the above

Q.19:- Delisting is not permissible in the following case:

• unless a period of three years has elapsed / since the listing of that class of equity shares
• buyback of equity shares by the company
• preferential allotment made by the company
• all of the above

Q.20:- Whether delisting of convertible securities are permitted:

• Yes, it can be permitted.
• The company can by passing of a special resolution in the meeting of the shareholders may submit an application for delisting, /Where it is listed.
• No, neither the company should apply and nor the stock exchanges should permit.
• None of the above.

Q.21:- A company’s shares are listed in Jaipur Stock Exchange, Delhi Stock Exchange and Bombay Stock Exchange (BSE). Now the company wants to delist from Jaipur and Delhi Stock Exchange. Whether the shareholders should be given an exit opportunity:

• There is no need to exit option since shares are listed on BSE which has nationwide trading terminals.
• Only the minority shareholders may be provided an exit option.
• Yes, the shareholders should be given an opportunity for exit option.
• None of the above.

Q.22:- The company shall give a public notice of the proposed delisting in at least:

• one Hindi national daily with wide circulation
• one regional language newspaper of the region where the concerned recognised stock exchange sare located
• one English national daily with wide circulation,
• shall of the above collectively

Q.23:- When the escrow account should be opening:

• After making the public announcement
• Before making the public announcement.
• After making the application for delisting.
• Before making an application for delisting