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CS Professional · IFSCA - Regulations, Listing and Compliances · Listing and Issuance of Securities

Mahanadi Capital Ltd, listed in GIFT IFSC, wants to understand why the exchange requires it to keep a compliance officer and to file periodic compliance reports. What is the primary regulatory purpose?

The purpose is to ensure the issuer keeps complying with listing conditions after listing, enabling the exchange and IFSCA to monitor it continuously. It is not meant to raise fees, restrict resident investors or exempt the company from other applicable laws.

  1. ATo raise listing fees for the exchange
  2. BTo restrict trading in its shares to resident investors
  3. CTo ensure ongoing adherence to listing conditions and monitoring by the exchange and IFSCA on a continuing basisCorrect
  4. DTo exempt the company from other laws once reports are filed

Explanation

Periodic reports and a designated compliance officer let the exchange and the regulator verify that the entity continues to meet listing conditions after the issue. They do not generate fees as a purpose, restrict investor residency, or grant exemption from other laws.

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