__________ means permanent removal of equity shares of

Solution

As per SEBI (Delisting of Equity Shares) Regulations, 2021, “delisting” means permanent removal of equity shares of the company from the trading platform of a recognised stock exchange, either by way of voluntary or compulsory method. As a consequence of delisting, the securities of that company would no longer be traded at that stock exchange.  In voluntary delisting, a company decides on its own to remove its securities from a stock exchange whereas in compulsory delisting, the securities of a company are removed from a stock exchange based on the grounds as prescribed in Rule 21 of Securities Contracts (Regulation) Rules, 1957. SEBI (Delisting of Securities) Regulations, 2021 provide an exit mechanism to the existing shareholders in case of delisting.