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    Question

    When a company decides to go public by listing its securities, it must navigate a series of regulatory and procedural steps to ensure compliance with the governing financial bodies. One critical step in this process involves entering into an agreement with an entity that facilitates the trading of its securities. This agreement outlines the terms and conditions the company must adhere to, ensuring transparency, compliance with regulatory standards, and protection of investor interests. Understanding which entity a company needs to engage with for this agreement is essential for anyone involved in the process of public listing. A company looking to list its securities needs to enter into a Listing agreement with which of the following?

    A SEBI Correct Answer Incorrect Answer
    B Stock exchange Correct Answer Incorrect Answer
    C Depository Correct Answer Incorrect Answer
    D Stock Broker Correct Answer Incorrect Answer
    E Clearing Corporation Correct Answer Incorrect Answer

    Solution

    When a company seeks to list its securities, it must enter into a listing agreement with a stock exchange. This agreement is crucial as it stipulates the terms and conditions the company must follow to be listed on the exchange. It ensures the company complies with the rules and regulations laid down by the stock exchange, as well as the broader regulatory framework established by SEBI. The listing agreement covers various aspects such as disclosure requirements, corporate governance norms, and other obligations that promote transparency and protect investor interests.

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