Sebi Listing Agreement Clause 36

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April 12, 2021

The above clause also illustrates the events that must be reported immediately:- Article 36 of the Equity Listing Agreement requires, among other things, any publicly traded company to consult stock exchanges on any important event that will affect the operation of the company or price-sensitive information. Section 36 contains indicative events that may have a “significant impact” on the performance or operation of the business. Although the clause contained events that could have a significant impact on the operation of the business, there were no clear guidelines or standards regarding the characterization of an event as an “essential event” and the content and details of that disclosure, which led to a kind of inequality of disclosure between listed companies. In general, companies have provided investors with minimal information about “significant events” affecting the entity, which may not necessarily provide the content of that information and the likely effects of such an event on the entity. Therefore, on 30 September 2014, the Bombay Stock Exchange[1] and the National Stock Exchange[2] issued a guide on the advertising obligation, in accordance with Article 36 of the list agreement, to ensure a certain sense of standardization. LA contains several clauses that require the listed company to provide regular information about the company and, in some cases, what is happening. Violation of the listing agreement is repressed by penalties and stock demining. The advantage of listing shares is that investors can freely exchange shares of listed companies for listed securities. G. S. RAO Consultant Tags: Listing Agreement, Clause No.36, Securities Contract (Regulation) Act,1956 SCRA Auction Rules Listing Department of Stock Exchange monitors compliance with these clauses and issues show references to any violations found in the listing agreement.

The guide is a complementary document to the existing equity listing agreement, it clarifies the details that must be presented on the stock markets in accordance with Article 36, and the guide to Article 36 of the agreement must therefore be read. The clause itself is inclusive in nature, the guide is also considered an inclusive standard for the advertising of listed companies.