Regulation 11 - Procedure on Receipt of Application - Securities And Exchange Board of India(Central Listing Authority) Regulations, 2003

Procedure on Receipt of Application 11 (1) Upon receipt of an application under regulation 10, the Authority may direct the applicant to furnish such additional information, documents or clarifications as may be required by the Authority, for the purpose of processing the said application and thereupon the applicant shall provide all such information within the time stipulated by the Authority. (2) In the event the applicant supresses any material information or misrepresents facts to the Authority or does not provide the information or documents sought by the Authority or does not inform the Authority of any relevant and material developments that take place subsequent to the filing and during the pendency of the application, the Authority shall be entitled to reject the application for letter precedent to listing. (3) The Authority shall be entitled to disclose to any person, exchange or authority the contents of the application and the information, documents or clarifications received by the Authority from the applicant and to invite their comments and views. (4) Notwithstanding the primary obligation of the applicant to furnish information or clarifications under sub-regulation (1), the Authority may call from the exchanges their observations or comments on the application and call from any intermediaries registered with the Board, such further information as it may deem necessary in connection with the processing of an application for a letter precedent to listing. (5) The Authority after examining the application and the information or clarifications called for, may either grant or refuse to grant the letter precedent to listing, and this shall be done within thirty days of the making of the application or of furnishing of the information or clarification by the applicant, as the case may be: Provided that the Authority shall not refuse to grant the letter precedent to listing unless the applicant is given an opportunity of making representation. (6) The Authority shall, while processing the application, have regard to the following factors : (a) compliance with the provisions of the Companies Act, 1956 pertaining to issue of securities; (b) compliance with the Guidelines or Regulations of the Board relating to Disclosure and Investor Protection; (c) compliance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 or the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999, or other relevant regulations or guidelines issued by the Board where applicable; (d) compliance with the listing conditions specified under the Act, the Securities Contracts (Regulation) Act, 1956 and the rules made thereunder and those specified by exchanges, or otherwise; and, (e) such other factors as the Authority may consider relevant in connection with processing the application, including, but not limited to, the following: (i) whether listing of securities of the applicant may be detrimental to the interests of investors or the securities market in view of the business practices, antecedents, credibility, financial morality, and market reputation of the applicant and of its promoters or group companies and of its directors or persons in control or persons acting in concert with the applicant; (ii) whether the applicant has made any provision for monitoring or control or supervision of the use of funds raised by the applicant through the issue of securities or based thereon; and, (iii) whether the applicant has made a disclosure in the offer document of the availability and mechanism of safety net, if any.