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

Tara Holdings, a foreign company, seeks to list on an IFSC exchange. The exchange's listing committee finds that the issuer's disclosure is incomplete and the exchange's rules require additional information. Which view is correct regarding the role of the exchange?

The IFSC exchange frames and applies listing conditions under IFSCA oversight and may demand further information before admitting securities. It cannot waive IFSCA's requirements by its own resolution, nor admit securities first and obtain disclosures afterwards.

  1. AThe exchange has no role, because IFSCA alone examines every application
  2. BThe exchange may frame listing rules and conditions, subject to IFSCA oversight, and can require further information before admitting securities to listingCorrect
  3. CThe exchange may waive all IFSCA requirements by a board resolution
  4. DThe exchange may admit the securities and only later ask for disclosures

Explanation

IFSC exchanges, as recognised market infrastructure, make listing rules and scrutinise applications under IFSCA oversight, and may seek further information. They cannot waive the regulator's requirements or admit securities ahead of satisfactory disclosure.

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