CS Executive · Capital Market and Securities Laws · Listing Obligations and Disclosure Requirements
Under the Securities Contracts (Regulation) Act, 1956, where securities are listed on the application of any person on a recognised stock exchange, what must that person do?
The person on whose application securities are listed must comply with the conditions of the listing agreement with that recognised stock exchange. This is the statutory basis, under Section 21 of the SCRA, for the binding force of listing obligations on listed entities.
- AComply with the conditions of the listing agreement with that stock exchangeCorrect
- BComply only with the Companies Act and not the exchange's conditions
- CObtain a fresh SEBI licence every year to keep the listing
- DComply with the listing conditions only if the exchange demands it in writing
Explanation
Section 21 of the SCRA provides that where securities are listed on the application of any person on a recognised stock exchange, that person must comply with the conditions of the listing agreement with that exchange. The other options add conditions that the section does not state.
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