INTRODUCTION

TheSecuritiesContracts(Regulation)Act,1956Actwasenactedinordertoprevent
undesirabletransactionsinsecuritiesandtoregulatetheworkingofstockexchangesinthe
country.TheprovisionoftheActcameintoforcewitheffectfrom20thFebruary,1957
videNotificationNo.SRO528dated16thFebruary,1957.

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MeaningofSecurities

Thedefinitionof'Securities'aspertheSecuritiesContractsRegulationAct(SCRA),1956,
includesinstrumentssuchasshares,bonds,scrips,stocksorothermarketablesecuritiesof
similarnatureinorofanyincorporatecompanyorbodycorporate,governmentsecurities,
derivatives of securities, units of collective investment scheme, interest and rights in
securities, security receipt or any other instruments so declared by the Central
Government.

Securitiesmayberepresentedbyacertificateor,moretypically,"noncertificated",thatis
inelectronicor"bookentry"onlyform.Certificatesmaybebearer,meaningtheyentitle
the holder to rights under the security merely by holding the security, orregistered,
meaning they entitle the holder to rights only if he appears on a security register
maintainedbytheissueroranintermediary.

Thecompanyorotherentityissuingthesecurityiscalledtheissuer.Acountry'sregulatory
structuredetermineswhatqualifiesasasecurity.Forexample,privateinvestmentpools
mayhavesomefeaturesofsecurities,buttheymaynotberegisteredorregulatedassuchif
theymeetvariousrestrictions.

debtsecurities(suchasbanknotes,bondsanddebentures),
equitysecurities,e.g.,commonstocks;
derivativecontracts,suchasforwards,futures,optionsandswaps.

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SecuritiesContractRegulation

Definitions

InthisAct,unlessthecontextotherwiserequires,

a) 'Contract'meansacontractfororrelatingtothepurchaseorsaleofsecurities;
b) 'Governmentsecurity'meansasecuritycreatedandissued,whetherbeforeorafter
thecommencementofthisAct,bytheCentralGovernmentoraStateGovernment
forthepurposeofraisingapublicloanandhavingoneoftheformsspecifiedin
clause(2)ofsection2ofthePublicDebtAct,1944(13of1944);
c) 'member'meansamemberofarecognisedstockexchange;
d) 'optioninsecurities'meansacontractforthepurchaseorsaleofarighttobuyor
sell,orarighttobuyandsell,securitiesinfuture,andincludesateji,amandi,ateji
mandi,agalli,aput,acalloraputandcallinsecurities;
e) 'prescribed'meansprescribedbyrulesmadeunderthisAct;
f) 'recognisedstockexchange'meansastockexchangewhichisforthetimebeing
recognisedbytheCentralGovernmentundersection4;
g) 'rules', with reference to the rules relating in general to the constitution and
managementofastockexchange,includes,inthecaseofastockexchangewhich
isanincorporatedassociation,itsmemorandumandarticlesofassociation;
h) securities'include
I. shares, scripts stocks, bonds, debentures, debenture stock or other
marketablesecuritiesofalikenatureinorofanyincorporatedcompanyor
otherbodycorporate;
II. Governmentsecurities;and
III. rightsorinterestsinsecurities;

SecurityContractRegulationAct

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Inaddition,underSection28AoftheSecuritiesContractsRegulationAct(SCRA)inserted
bytheSEBIAct,theGovernmentmaydelegatepowersexercisablebyitalsototheSEBI,
subject to such limitations/condition as may be stipulated by the Government. While
delegatingthepowerstotheSEBI,theGovernmentmayretainthepowerinrelationtoany
matterundertheAct.Inrespectofthefollowingmatters,theSEBIhasbeenauthorizedto
exercisepowersundertheSCRAwhichwereformerlyexercisedbytheGovernment:

MainProvisions:

TheActempowerstheCentralGovernmentorinsomecasesSEBIpertainingto:

Thegrantofrecognitionorwithdrawalofrecognitiontoanystockexchange

Approvalofthebyelawsandrulesofstockexchange

Powertodirectthestockexchangetomakeoramendrulesandbyelaws

Monitoringtheactivities andfunctioningofthestockexchanges bycallingfor

periodicreturnsandspecificinformation

Powertosuspendbusinessofanystockexchange

Power to supersede the governing body of any stock exchange on account of

specificreasons

Regulationoflistingofsecurities.

TheSEBIisnowexercisingmostofthepowersundertheSCRA.

RegistrationofIntermediaries:

All intermediaries dealing in securities are compulsorily registered with the SEBI in
accordancewiththeregulationsmadeundertheSEBIAct.Thecertificateofregistration
containstheconditions/rulesandregulationsforconductofbusinessbythesecuritymarket
intermediaries.TheSEBIprescribesregulationsfortheapplicationformandthemannerof
making an application as well as the fee payable. The SEBI can suspend/cancel a
certificateofaregistrationgrantedtotheintermediariesinaccordancewiththeregulations
madebyitonthisbehalf.Anintermediary/personaggrievedbyanorderoftheSEBI,

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suspending/canceling registration can prefer an appeal to the Government. By various
regulations notified from time to time, the SEBI has prescribed the procedure for
registrationofvariousintermediariesassociatedwiththesecuritiesmarket.

DirectionsfromGovernment:
TheGovernmentofIndiacanissuedirectionstotheSEBIonquestionsofpolicyinwriting
fromtemtotime.Itisboundtofollowandobservesuchdirectionsintheexerciseofits
powers/the performance of its functions. The government has absolute discretion to
determine whether a question is one of policy or not. Its inability to discharge its
functions/duties, or noncompliance to follow and act upon direction given by the
GovernmentorsGovernment.

Powertomakerulesandregulations:

ThegovernmentisauthorizedtomakerulesforcarryingoutthepurposeoftheSEBIAct.
Theimportantmatterforwhichrulesmaybeframed,include,theadditionalfunctionsto
beperformedbyit,itsconstitution,maintenanceofitsaccounts,mannerofinquiryto
imposepenaltyfordefaults,constitutionoftheSecuritiesAppellateTribunal(SAT),the
formsofappealandfeebeforetheSAT,theforminwhichreportshavetobesubmittedto
thegovernment. Tocarryoutitsfunctions,theSEBIisempoweredtomakeregulation.
EveryregulationsmadebyitmusthavethepriorapprovaloftheGovernment.

Contractandoptioninsecurities

Contractsinnotifiedareassection13

CentralGovernment hasthepowertodeclareastateoranareaasnotifiedareaunder
section13.Whilenotifyinganysuchstateorarea,dueconsiderationisgiventothenature
orvolumeoftransationsorsecuritiesinsuchstateorarea.

Effectofdeclarationofareaasnotifiedarea:

Everycontractsecuritiesinsuchnotifiedstateorareaislegalonlyif:

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 i. Suchcontractenteredintobetweenthemembersofarecongnizedstockexchange
or stock exchange. Contracts entered between persons other than members of
recognizedstockexchangewillbeconsideredillegal.
ii. Any contract entered into through or with a members of a recognized stock
exchange.
iii. Suchcontractaresubjecttotermsandconditionsasstipulatedbyrecognizedstock
exchange.recognizedstockexchangecanlaysuchtermsandconditionswiththe
priorapprovalofSEBI.

Theprovisionsofsection13arenotapplicabletospotdeliverycontract.

Contractsinnotifiedareastobevoidincertaincircumstances

14.(1)Anycontract enteredintoinanyStateorarea whichisdeclarednotifiedbuthe

centralgovernmentandwhichisincontraventionofanyofthebyelawsspecifiedinthat
behalfshallbevoidwithrespectto.

(i)therightsofanymemberoftherecognisedstockexchangewhohasenteredinto
suchcontractincontraventionofanysuchbyelaws,and

(ii) the rights of any other person who has knowingly participated in such
transaction.

Powerofcentralgovernmenttoprohibitcontractsincertaincasessection16
i. centralgovernmentcandeclarethatanycontractforthesaleorpurchaseofany
securityshallnotbemadeexecptwiththepermissionofthecentralgovernment.
ii. Suchdeclarationcanbemadebythegovernmentonlyifitisoftheopinionthatit
isnecessarytopreventundesirablespeculationinspecifiedsecuritiesinanystateor
area.
iii. Anyagreementforthesaleorpurchaseofsecuritiesshallbeillegalifmadein
contraventionoftheaboveprovisions.

Licensingofdealersinsecuritiesincertainsecuritiessection17:
CentralGovernmentmay bynotificationintheOfficialGazettedeclarethataperson
cannotcarryonbusinessofdealinginsecuritiesexceptunderauthorityofalicensegranted
bySEBIinthisbehalf.Inotherwordsection17requiresapersondealinginsecuritiesin

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anystatewhichhasnotbeennotifiedundersection13buthasbeennotifiedundersection
17.

Itimpliesthatlicensingcanbemadecomplusoryonlyinrespectofstate/areawhichisnot
notifiedundersection13.

Thesectiondoesnotapplyto:

a) Spotdeliverycontracts
b) Doingofanythingbyoronbehalfofamemberofanyrecognisedstockexchange.

Thusthissectionmakesprovisionsforissuinglicensetopersonsotherthanmembers
ofstockexchanges,inareawhicharenotnotifiedundersection13.

Listinginsecurities

Listingmeansadmissionofsecuritiestodealingsonarecognizedstockexchange.The
securities may be of anypublic limited company, Central or State Government, quasi
governmentalandotherfinancialinstitutions/corporations,municipalities,etc.

Theobjectivesoflistingaremainlyto:

provideliquiditytosecurities;
mobilizesavingsforeconomicdevelopment;
protectinterestofinvestorsbyensuringfulldisclosures.

BSEGuidelinesforListing:

The BSE Limited has a dedicated Listing Department to grant approval for listing of
securities of companies in accordance with the provisions of the Securities Contracts
(Regulation)Act,1956,SecuritiesContracts(Regulation)Rules,1957,CompaniesAct,
1956,GuidelinesissuedbySEBIandRules,ByelawsandRegulationsofBSE.

BSEhassetvariousguidelinesandformsthatneedtobeadheredtoandsubmittedbythe
companies.Theseguidelineswillhelpcompaniestoexpeditethefulfillmentofthevarious
formalitiesanddisclosurerequirementsthatarerequiredatvariousstagesof

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 PublicIssues
InitialPublicOffering
FurtherPublicOffering
PreferentialIssues
IndianDepositoryReceipts
Amalgamation
QualifiedInstitutionsPlacements

securitieslistedonBSEhastocomplywiththelistingrequirementsprescribedbyit.
Someoftherequirementsareasunder:

[I]MinimumListingRequirementsforNewCompanies:

ThefollowingeligibilitycriteriahavebeenprescribedeffectiveAugust1,2006forlisting
of companies on BSE, through Initial Public Offerings (IPOs) & Followon Public
Offerings(FPOs):

1.Companieshavebeenclassifiedaslargecapcompaniesandsmallcapcompanies.A
largecapcompanyisacompanywithaminimumissuesizeofRs.10croreandmarket
capitalizationofnotlessthanRs.25crore.Asmallcapcompanyisacompanyotherthana
largecapcompany.

a)InrespectofLargeCapCompanies

I. The minimum postissue paidup capital of the applicant company (hereinafter

referredtoas"theCompany")shallbeRs.3crore;and
II. TheminimumissuesizeshallbeRs.10crore;and
III. TheminimummarketcapitalizationoftheCompanyshallbeRs.25crore(market
capitalizationshallbecalculatedbymultiplyingthepostissuepaidupnumberof
equityshareswiththeissueprice).

b)InrespectofSmallCapCompanies

I. TheminimumpostissuepaidupcapitaloftheCompanyshallbeRs.3crore;and
II. TheminimumissuesizeshallbeRs.3crore;and
III. TheminimummarketcapitalizationoftheCompanyshallbeRs.5crore(market
capitalizationshallbecalculatedbymultiplyingthepostissuepaidupnumberof
equityshareswiththeissueprice);and

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IV. Theminimumincome/turnoveroftheCompanyshallbeRs.3croreineachofthe
precedingthree12monthsperiod;and
V. Theminimumnumberofpublicshareholdersaftertheissueshallbe1000.
VI. AduediligencestudymaybeconductedbyanindependentteamofChartered
AccountantsorMerchantBankersappointedbyBSE,thecostofwhichwillbe
bornebythecompany.Therequirementofaduediligencestudymaybewaivedif
afinancialinstitutionorascheduledcommercialbankhasappraisedtheprojectin
thepreceding12months.

Forallcompanies:

a) In respect of the requirement of paidup capital and market capitalization, the

issuersshallberequiredtoincludeinthedisclaimerclauseformingapartofthe
offerdocumentthatintheeventofthemarketcapitalization(productofissueprice
and the post issue number of shares) requirement of BSE not being met, the
securitiesoftheissuerwouldnotbelistedonBSE.
b) The applicant, promoters and/or group companies, shall not be in default in
complianceofthelistingagreement.
c) The above eligibility criteria would be in addition to the conditions prescribed
underSEBI(DisclosureandInvestorProtection)Guidelines,2000.

[II]Minimum Requirements for Companies Delisted by BSE seeking Relisting on

BSE

CompaniesdelistedbyBSEandseekingrelistingatBSEarerequiredtomakeafresh
publicofferandcomplywiththeextantguidelinesofSEBIandBSEregardinginitial
publicofferings.

[III]PermissiontoUsetheNameofBSEinanIssuerCompany'sProspectus

Companiesdesiringtolisttheirsecuritiesofferedthroughapublicissuearerequiredto
obtainpriorpermissionofBSEtousethenameofBSEintheirprospectusorofferforsale
documentsbeforefilingthesamewiththeconcernedofficeoftheRegistrarofCompanies.

BSEhasaListingCommittee,comprisingofmarketexperts,whichdecidesuponthe
matter of granting permission to companies to use the name of BSE in their

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prospectus/offerdocuments.ThisCommitteeevaluatesthepromoters,company,project,
financials,riskfactorsandseveralotheraspectsbeforetakingadecisioninthisregard.

Decisionwithregardtosometypes/sizesofcompanieshasbeendelegatedtotheInternal
CommitteeofBSE.

[IV]SubmissionofLetterofApplication

AsperSection73oftheCompaniesAct,1956,acompanyseekinglistingofitssecurities
onBSEisrequiredtosubmitaLetterofApplicationtoallthestockexchangeswhereit
proposes tohaveits securities listedbeforefilingtheprospectuswiththeRegistrarof
Companies.

[V]AllotmentofSecurities:

As per the Listing Agreement, a company is required to complete the allotment of

securitiesofferedtothepublicwithin30daysofthedateofclosureofthesubscriptionlist
and approach the Designated Stock Exchange for approval of the basis of allotment.
IncaseofBookBuildingissues,allotmentshallbemadenotlaterthan15daysfromthe
closureoftheissue,failingwhichinterestattherateof15%shallbepaidtotheinvestors.

[VI]TradingPermission:

AsperSEBIGuidelines,anissuercompanyshouldcompletetheformalitiesfortradingat
allthestockexchangeswherethesecuritiesaretobelistedwithin7workingdaysof
finalizationofthebasisofallotment.

AcompanyshouldscrupulouslyadheretothetimelimitspecifiedinSEBI(Disclosureand
Investor Protection) Guidelines 2000 for allotment of all securities and dispatch of
allotmentletters/sharecertificates/creditindepositoryaccountsandrefundordersandfor
obtaining the listing permissions of all the exchanges whose names are stated in its
prospectusorofferdocument.Intheeventoflistingpermissiontoacompanybeingdenied
byanystockexchangewhereithadappliedforlistingofitssecurities,thecompanycannot
proceedwiththeallotmentofshares.However,thecompanymayfileanappealbefore
SEBIunderSection22oftheSecuritiesContracts(Regulation)Act,1956.

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[VII]Requirementof1%Security:

Companiesmakingpublic/rightsissuesarerequiredtodeposit1%oftheissueamount
withtheDesignatedStockExchangebeforetheissueopens.Thisamountisliabletobe
forfeitedintheeventofthecompanynotresolvingthecomplaintsofinvestorsregarding
delay in sending refund orders/share certificates, nonpayment of commission to
underwriters,brokers,etc.

[VIII]PaymentofListingFees:

AllcompanieslistedonBSEarerequiredtopaytoBSEtheAnnualListingFeesby30th
AprilofeveryfinancialyearaspertheScheduleofListingFeesprescribedfromtimeto
time.

Applicability:

TheabovescheduleofListingFeeisuniformlyapplicableforallcompaniesirrespectiveof
whetherBSEisthedesignatedstockexchangeornot.

Paymentdate:

ThelastdateforpaymentofListingFeefortheyear201112isApril30,2011.Failureto
paytheListingFee(forequitydebtsegmentand/orMutualFund)bytheduedatewill
attractinterest@12%perannumw.e.f.May1,2011.

Servicetax:

ServiceTaxispayableonthelistingfeeattheapplicablerates.

[IX]CompliancewiththeListingAgreement:

CompaniesdesirousofgettingtheirsecuritieslistedatBSEarerequiredtoenterintoan
agreementwithBSEcalledtheListingAgreement,underwhichtheyarerequiredtomake
certaindisclosuresandperformcertainacts,failingwhichthecompanymayfacesome
disciplinary action, including suspension/delisting of securities. As such, the Listing
Agreementisofgreatimportanceandisexecutedunderthecommonsealofacompany.
UndertheListingAgreement,acompanyundertakes,amongstotherthings,toprovide

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facilitiesforprompttransfer,registration,subdivisionandconsolidationofsecurities;to
givepropernoticeofclosureoftransferbooksandrecorddates,toforward6copiesof
unabridgedAnnualReports,BalanceSheetsandProfitandLossAccountstoBSE,tofile
shareholdingpatternsandfinancialresultsonaquarterlybasis;

tointimatepromptlytotheExchangethehappeningswhicharelikelytomateriallyaffect
the financial performance of the Company and its stock prices, to comply with the
conditionsofCorporateGovernance,etc.

The Listing Department of BSE monitors the compliance by the companies with the
provisionsoftheListingAgreement,especiallywithregardtotimelypaymentofannual
listingfees,submissionofresults,shareholdingpatternsandcorporategovernancereports
onaquarterlybasis.Penalactionistakenagainstthedefaultingcompanies.

[X]CashManagementServices(CMS)CollectionofListingFees:

In order to simplify the system of payment of listing fees, BSE has entered into an
arrangementwithHDFCBankforcollectionoflistingfeesfrom141locationsalloverthe
country.Details of the HDFC Bank branches are available on our website site
www.bseindia.com as well as on the HDFC Bank website www.hdfcbank.com This
facility is being provided free of cost.
Companiesintendingtoutilizethisfacilityforpaymentoflistingfeeshouldfurnishthe
information(asmentionedbelow)intheCashManagementCashDepositSlip.Theseslips
areavailableatalltheHDFCBankbranches

The cheque should be drawn in favour of BSE limited and should be payable
locally.companiesarerequesttomentioninthedepositslip,thefinancialyear(s)forwhich
the listing fee is being paid. Payment made through any other slips would not be
considered.Theaboveslipswillhavetobefilledinquadruplicate.Oneacknowledged
copywouldbeprovidedtothedepositorbytheHDFCBank.

NSEguideliensoflisting:

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AnIssuerhastotakevariousstepspriortomakinganapplicationforlistingitssecurities
ontheNSE.Thesestepsareessentialtoensurethecomplianceofcertainrequirementsby
theIssuerbeforelistingitssecuritiesontheNSE.Thevariousstepstobetakeninclude:

(1)SubmissionofMemorandumandArticlesofAssociation:

Rule 19(2) (a) of the Securities Contracts (Regulation) Rules, 1957 requires that the
ArticlesofAssociationoftheIssuerwantingtolistitssecuritiesmustcontainprovisionsas
given hereunder.

a) The Articles of Association ofan Issuer shall contain the following provisions
namely:
b) thatthereshallbenoforfeitureofunclaimeddividendsbeforetheclaimbecomes
barredbylaw;
c) thatacommonformoftransfershallbeused;
d) thatfullypaidsharesshallbefreefromalllienandthatinthecaseofpartlypaid
sharestheIssuer'slienshallberestrictedtomoneyscalledorpayableatafixed
timeinrespectofsuchshares;
e) thatregistrationoftransfershallnotberefusedonthegroundofthetransferor
beingeitheraloneorjointlywithanyotherpersonorpersonsindebtedtotheIssuer
onanyaccountwhatsoever;
f) thatanyamountpaidupinadvanceofcallsonanysharemaycarryinterestbut
shallnotinrespectthereofconferarighttodividendortoparticipateinprofits;
g) thatoptionorrighttocallofsharesshallnotbegiventoanypersonexceptwiththe
sanctionoftheIssueringeneralmeetings.
h) permissionforSubDivision/ConsolidationofShareCertificate.

(2)SubmissionofApplication:

(a)ForIssuerslistingonNSEforthefirsttime

Issuers desiring to list existing/new securities on the NSE shall make application for
admissionoftheirsecuritiestodealingsontheNSEintheformsprescribedinthisregard
asperdetailsgivenhereunderorinsuchotherformorformsastheRelevantAuthority
mayfrom time totime prescribein addition theretoorinmodification orsubstitution

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thereof.
(b)ListingoffurtherIssuesbyIssuersalreadylistedonNSE:

IssuerswhosesecuritiesarealreadylistedontheNSEshallapplyforadmissiontolisting
ontheNSEofanyfurtherissueofsecuritiesmadebythem.Theapplicationforadmission
shallbemadeintheformsprescribedinthisregardorinsuchotherformorformsasthe
RelevantAuthoritymayfromtimetotimeprescribeinadditiontheretoorinmodification
or substitution thereof.
(c)Listingfees:ThelistingfeeapplicablefromApril1,2011isasfollows:

Companieswhichhaveapaidupshare,bondand/ordebentureand/ordebtcapital,etcof
more than Rs.500 crores will have to pay a minimum fees of Rs.5,00,000/ and an
additionallistingfeesofRs.3,400/foreveryincreaseofRs.5croresorpartthereofinthe
paidupshare,bondand/debentureand/ordebtcapitaletc.

Companieswhichhaveapaidupshare,bondand/ordebentureand/ordebtcapital,etc.of
more than Rs.1,000 crores will have to pay minimum fees of Rs.8,50,000/ and an
additionallistingfeesofRs.3,700/foreveryincreaseofRs.5croresorpartthereofinthe
paidupshare,bondand/ordebentureand/ordebtcapitaletc.Thelistingfeesdependonthe
paidupsharecapitaloftheCompany.

(d)ListingFeesMutualFund

ThelistingfeesdependonthepaidupunitcapitalofyourScheme:

Wherethetenureoftheschemeismorethansixmonths,thelistingfeeasapplicablefor
multiplesofsixmonths. asgivenintheabovetableshallbelevied. Pleasedrawyour
Cheques/DemandDraftsfavouringNationalStockExchangeofIndiaLimitedpayableat
Mumbai.

(3)SecurityDeposit
(Payable only for new and fresh issues and only when NSE is the Regional Stock
Exchange)
TheRelevantAuthorityshallnotgrantadmissiontodealingsofsecuritiesofanIssuer
whichisnotlistedorofanynew(originalorfurther)issueofsecuritiesofanIssuer

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exceptingMutualFunds,whichislistedontheNSEunlesstheIssuerdepositsandkeeps
depositedwiththeNSE(incaseswherethesecuritiesareofferedforsubscription,whether
throughtheissueofaprospectus,letterofofferorotherwise,andNSEistheRegional
StockExchangefortheIssuer)anamountcalculatedat1%oftheamountofsecurities
offeredforsubscriptiontothepublicandortotheholdersofexistingsecuritiesofthe
Issuer,asthecasemaybeforensuringcompliancebytheIssuerwithintheprescribedor
stipulatedperiodofallrequirementsandconditionshereinaftermentionedandshallbe
refundableorforfeitableinthemannerhereinafterstated:

1. The Issuer shall comply with all prevailing requirements of law including all
requirementsofandunderanynotifications,directivesandguidelinesissuedbythe
CentralGovernment,SEBIoranystatutorybodyorlocalauthorityoranybodyor
authorityactingundertheauthorityordirectionoftheCentralGovernmentandall
prevailinglistingrequirementsandconditionsoftheNSEandofeachrecognized
Stock Exchange where the Issuer has applied for permission for admission to
dealingsofthesecurities,withintheprescribedorstipulatedperiod;
2. If the Issuer has complied with all the aforesaid requirements and conditions
including,whereverapplicable,itsobligationunderSection73(oranystatutory
modificationorreenactmentthereof)oftheCompaniesAct,1956andobligations
arisingtherefrom,withintheprescribedorstipulatedperiod,andonobtainingaNo
ObjectionCertificatefromSEBIandsubmittingittoNSE,NSEshallrefundtothe
Issuerthesaiddepositwithoutinterestwithinfifteendaysfromtheexpiryofthe
prescribedorstipulatedperiod;
3. Ifonexpiryoftheprescribedorstipulatedperiodortheextendedperiodreferredto
hereafter, the Issuer has not complied with all the aforesaid requirements and
conditions,thesaiddepositshallbeforfeitedbytheNSE,atitsdiscretion,and
thereuponthesameshallvestintheNSE.Providedtheforfeitureshallnotrelease
the Issuer of its obligation to comply with the aforesaid requirements and
conditions;
4. IftheIssuerisunabletocompletecomplianceoftheaforesaidrequirementsand
conditionswithintheprescribedorstipulatedperiod,theNSE,atitsdiscretionand
iftheIssuerhasshownsufficientcause,butwithoutprejudicetotheobligationsof
the Issuer under the laws in force to comply with any such requirements and

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 conditions within the prescribed or stipulated period, may not forfeit the said
depositbutmayallowsuchfurthertimetotheIssuerastheNSEmaydeemfit;
providedthat
a) theIssuerhasatleasttendayspriortoexpiryoftheprescribedorstipulatedperiod
appliedinwritingforextensionoftimetotheNSEstatingthereasonsfornon
compliance,and
b) theIssuer,havingbeenallowedfurthertimebytheNSE,hasbeforeexpiryofthe
prescribedorstipulatedperiod,publishedinamannerrequiredbytheNSE,thefact
ofsuchextensionhavingbeenallowed;providedfurtherthatwheretheNSEhas
not allowed extension in writing before expiry of the prescribed or stipulated
period,therequestforextensionshallbedeemedtohavebeenrefused;provided
alsothatanysuchextensionshallnotreleasetheIssuerofitsobligationstocomply
withtheaforesaidrequirementsandconditions.
c) 50%oftheabovementionedsecuritydepositshouldbepaidtotheNSEincash.
Thebalanceamountcanbeprovidedbywayofabankguarantee,intheformat
prescribedbyoracceptabletoNSE.Theamounttobepaidincashislimitedto
Rs.3crores.

(4)SupportingDocuments

IssuersapplyingforadmissionoftheirsecuritiestodealingsontheNSEshallsubmittothe
NSEthefollowing:

Documents and Information The documents and information prescribed in

AppendixDorAppendixI(asthecasemaybe)tothisRegulationorsuchother
documents and information as the Relevant Authority may from time to time
prescribe,inadditiontheretoorinmodificationorsubstitutionthereoftogether
with any other documents and information which the Relevant Authority may
requireinanyparticularcase;

DistributionSchedulesDistributionSchedulesdulycompletedinrespectofeach
classandkindofsecurityintheformprescribedinAppendixE(TableI,II&III)
tothisRegulationorinsuchotherformorformsastheRelevantAuthoritymay

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fromtimetotimeprescribeinadditiontheretoorinmodificationorsubstitution
thereof.

CONCLUSION

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TheSecuritiesContract(Regulation)Act,1956dealswithstockexchanges,contractsin
securities,andlistingofsecuritiesonstockexchanges,andkeepsavigiloverallthestock
exchanges of India and prevents undesirable contracts in Securities market through a
processofrecognitionandcontinuedsupervision.

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