What may result from non-compliance with Stock Exchange rules?

Non-compliance with Stock Exchange rules can lead to significant legal repercussions for the company involved. Stock Exchanges have strict regulations in place to ensure fair trading practices, transparency, and the protection of investors. When a company fails to adhere to these regulations, it can face sanctions such as fines, suspension of trading, or even delisting from the exchange entirely.

Legal repercussions may also extend beyond the exchange to include actions from regulatory bodies, which can impose additional penalties or take legal action against the company. This aspect emphasizes the importance of compliance, as it directly affects not just the operational standing of the company, but also its ability to maintain relationships with investors and stakeholders.

In contrast, increased shareholder trust, enhanced corporate reputation, and improved investor confidence are typically outcomes of compliance with Stock Exchange rules rather than non-compliance, highlighting the crucial nature of adhering to these regulations in sustaining a company's legitimacy and performance in the market.