What Is Listing Agreement Sebi

The listing contract is the basic document signed between the company and the stock exchange when the companies are listed on the stock exchange. The main objectives of the listing agreement are to ensure that companies initiate good corporate governance. The exchange on behalf of the Security Exchange Board of India ensures that companies follow good corporate governance. The listing agreement consists of 54 clauses that specify corporate governance that listed companies must follow, otherwise companies must expect disciplinary action, suspension and delisting of securities. Companies must also make certain disclosures and act in accordance with the terms of the agreement. “This not only increases the legal force behind the provisions that impose post-listing obligations and disclosure requirements, but also opens up new avenues for shareholders to enforce post-listing requirements,” said Sandeep Parekh, founder of Finsec Law Advisors. According to legal experts, this is an important step towards aligning the quality of post-listing information with primary market information and will lead to better corporate governance practices. “In cases where the criteria set out in the Regulations do not apply, all information that the board considers important must be disclosed,” he added. Sebi provided advice rather than stating to companies what the policy should be. Secondly, adopt a uniform regime for the requirements arising from different securities quotation agreements. Paragraphs 4 and 31A of the Rules should enter into force, according to which ordinary resolution should be refrained in accordance with the provisions of the Companies Act 2013 instead of special resolution in the case of all significant transactions between related parties. And the reclassification of promoters as public shareholders in various circumstances. The Regulation has been transformed into a consolidated form to make all the agreements listed a single structured document to facilitate referencing.

The registration regulations have been divided into two parts, namely (a) the substantive provisions included in the main part of the regulations; (b) procedural rules in the form of annexes to the rules. [1] The 2. In September 2015, the Security and Exchange Board of India (SEBI) published a report on the Security and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Listed companies are subject to listing regulations. Paragraph 2(52) of the Law on public limited liability provides that listed companies and all companies which have listed their securities are to be listed on a recognised stock exchange and that the listing rules therefore apply to them. The main objective of the entry into force of this regulation was initially to align the listing agreement with the Companies Act 2013. The new listing rules require listed companies to disclose material events and information based on the guidelines of general importance they have established. The policy must be based on the two materiality criteria set out in the rules. “The new regulation therefore only provides for the criteria.

The publicly traded company must calculate its own policy based on these criteria,” said Lalit Kumar, a partner at J Sagar Associates. .

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