Section 40 of CA 2013 : Section 40: Securities To Be Dealt With In Stock Exchanges
CA 2013
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Explanation using Example
Imagine a company called "Tech Innovate Ltd." is planning to go public and wants to issue shares to the general public. According to Section 40 of the Companies Act, 2013, before Tech Innovate Ltd. can make its public offer, it must first apply to a recognized stock exchange, like the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE), and get approval for its securities to be listed and traded on that exchange.
Once Tech Innovate Ltd. has made the application, and if they mention this in their prospectus, they must also clearly state the name of the stock exchange (for example, BSE) where the securities will be listed. This is to...
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