Section 21 of SCRA : Section 21: Conditions For Listing

Explanation using Example

A company named "XYZ Tech" wants to raise capital by going public and decides to list its shares on the National Stock Exchange (NSE), which is a recognised stock exchange. To do so, the company files an application with NSE. As per Section 21 of the Securities Contracts (Regulation) Act, 1956, once XYZ Tech's application is accepted and its securities are listed on the NSE, the company must adhere to the conditions specified in the listing agreement it has with NSE. This includes obligations like timely financial reporting, maintaining a certain level of corporate governance, and disclosing any material information that could affect its share prices to the public and the exchange.