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CS Executive · Capital Market and Securities Laws · Listing Obligations and Disclosure Requirements

Sunrise Textiles Ltd is listed on a recognised stock exchange. Under Section 21 of the Securities Contracts (Regulation) Act, 1956, a person on whose application securities are listed must do what?

Under Section 21 of the SCRA, a person whose securities are listed on a recognised stock exchange on their application must comply with the conditions of the listing agreement with that exchange. This is the statutory basis for enforcing listing and governance obligations such as related party transaction disclosures.

  1. AComply with the conditions of the listing agreement with that stock exchangeCorrect
  2. BObtain prior approval of the Central Government for every transfer of securities
  3. CRepay all application money within eight days of listing
  4. DRegister as a pooled investment vehicle with SEBI

Explanation

Section 21 of the SCRA states that where securities are listed on the application of any person on a recognised stock exchange, that person shall comply with the conditions of the listing agreement with that exchange. The other options relate to unrelated provisions such as Section 17A repayment or Section 30B pooled vehicles.

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