LISTING

Listing
• Central Listing Authority (CLA)
– Central Listing Authority (CLA) is a regulatory body
established by the Securities and Exchange Board of
India. CLA shall be charged with the responsibility of
scrutinizing and approving all applications for Letters
Precedent to Listing required for listing of any security
on the stock exchanges.
– It shall also make recommendations to SEBI on
matters relating to policies, protection of the interest
of the investors in securities, development / regulation
of securities market, listing conditions and listing
standards.
– It shall undertake any other functions as may be
delegated to it by SEBI form time to time.
 Objective of CLA
• The main objective behind setting up of
CLA was to bring uniformity in the exercise
of due diligence in scrutinizing listing
applications.
 Letter precedent to listing
• A letter precedent to listing means a letter issued
by CLA to permit the applicant to make a listing
application to any exchange, including re-listing
and listing of an already listed security at an
exchange other than where it is currently listed.
• If the applicant suppresses any material
information/ misrepresents facts/does not
provide information or documents as
sought/does not inform any relevant material
development subsequent to filing and during the
pendency of the application, then CLA would be
entitled to reject the application