Stock Exchanges and Listed Entities

The Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations 2015 was notified on 2^nd September 2015 and will come into force from 1^st December 2015. In this post we will discussion definition of Stock Exchanges, Listed Entities and other related terms.

Securities transactions are governed by securities law and take places at stock exchanges where securities of listed entities listed under listed agreement are traded. Listed entities may list their securities either on Main Board or SME Exchange.

Securities Law

“Securities Law” means the Securities and Exchange of India Act, 1992, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996, and the provisions of the Companies Act, 1956, and Companies Act, 2013, and the rules, regulations, circulars or guidelines made thereunder. [Regulation 2(1)(zf) of the SEBI (LODR) Regulation, 2015]

Stock Exchanges

“Stock Exchange” means a recognised stock exchange as defined under clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956. [Regualtion 2(1)(zk) of SEBI (LODR) Regulations 2015]

“Recognised Stock Exchange” means a stock exchange which is for the time being recognised by the Central Government under Section 4 {of Securities Contract (Regulation) Act, 1956}. [Section 2(f) of SCRA, 1956]

“Stock Exchange” means –

• Any body of individuals, whether incorporated or not, constituted before corporatisation and demutualisation under Section 4A and 4B {of SCRA, 1956}, or
• A body corporate incorporated under the Companies Act, 1956 {now, the Companies Act, 2013 or any earlier Act} whether under a scheme of corporatisation and demutualisation or otherwise,

For the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. [Section 2(j) of SCRA, 1956]

Stock exchanges essentially are (a) body or body corporate, (b) assisting, regulating or controlling (c) the business of buying, selling or dealing (d) in securities.

Main Board

“Main Board” means main board as defined in clause (a) of sub-regulation (1) of regulation 106N of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. [Regulation 2(1)(r) of SEBI (LODR) Regulation, 2015]

“Main Board” means a recognized stock exchange having nationwide trading terminals, other than SME exchange. [Regulation 106N(1)(a) of the SEBI (ICDR) Regulations 2009]

SME Exchanges

“SME Exchange” means an SME exchange as defined under clause (c) of sub-regulation (1) of regulation 106N of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. [Regulation 2(1)(zj) of SEBI (LODR) Regulations 2015]

“SME Exchange” means a trading platform of a recognised stock exchange having nationwide trading terminals permitted by the Board to list the specified securities issued in accordance with this Chapter {XB issue of Specified Securities by Small and Medium enterprises} and includes a stock exchange granted recognition for this purpose but does not include the Main Board. [Regulation 106N(1)(c) of SEBI (ICDR) Regulations, 2009]

Listed Entities

“Listed Entity” means an entity which has listed, on a recognised stock exchange(s), the designated securities issued by it or designated securities issued under schemes managed by it, in accordance with the listing agreement entered into between the entity and the recognised stock exchange(s). [Regulation 2(1)(p) of SEBI (LODR) Regulation, 2015]

Listed entities are entities which designated securities issued by it listed.

Listing Agreement

“Listing Agreement” shall mean an agreement that is entered into between a recognised stock exchange and an entity, on the application of that entity to the recognised stock exchange, undertaking to comply with conditions for listing of designated securities. [Regulation 2(1)(q) of SEBI (LODR) Regulation, 2015]

Small and Medium Enterprises

“Small and Medium Enterprises” or “SME” shall mean an entity which has issued specified securities in accordance with the provisions of Chapter XB of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. [Regulation 2(1)(zi) of SEBI (LODR) Regulations 2015]

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