« Corporate governance aims to maintain a balance between economic and social objectives as well as individual and local objectives. The governance framework is intended to promote the efficient use of resources and to require responsibility for the management of these resources. The aim is to coordinate the best interests of individuals, businesses and society. -Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992 The fundamental criterion on which the entire list of agreements is based is corporate governance. Currently, there are 54 clauses in the list agreement and all on the basis of that concept. In addition, there is a clause dealing specifically with corporate governance, namely: Clause 49. Listing involves the admission of securities to trading on a recognized exchange. Securities can be limited companies, central or state governments, quasi-state institutions and other financial institutions/capital companies, municipalities, etc. The main objectives of the listing are: – the provision of liquidity to the securities; Mobilizing savings for economic development; Protect the interests of investors by ensuring full disclosure. A company wishing to contribute its securities on the stock exchange is required to apply in the form prescribed on the Stock Exchange prior to the issuance of the prospectus by the Company, if the securities are issued by prospectus or before the issuance of the « offer to sell » when the securities are issued by offer of sale. The fundamental criterion on which the entire list agreement is based is corporate governance. Currently, there are 54 clauses in the list agreement and all on the basis of that concept. In addition, there is a clause dealing specifically with corporate governance, namely: With Article 49. As part of a list agreement, the Stock Exchange, on behalf of SEBI, ensures that companies follow good business governance practices.
Therefore, the list agreement is of great importance and takes place under the common seal of a company. Under the list agreement, the company is required to provide certain information and perform certain acts, otherwise the company may be threatened with disciplinary sanctions, including suspension/list of securities. A company undertakes, among other things, to provide opportunities for transfer, registration, subdivision and rapid consolidation of securities; regular disclosure of the closing of transfer books and registration data, the transmission to the stock exchange of copies of management reports, balance sheets and profit and loss accounts, the quarterly presentation of participation models and financial results; immediately inform the Stock Exchange to comply with corporate governance conditions, etc., events that could have a significant impact on the company`s financial capacity and share prices. The Listing Department of Stock Exchange monitors companies` compliance with listing agreement provisions, including timely payment of annual listing fees, reporting of results, participation models and corporate governance reports on a quarterly basis. Any company wishing to have its securities listed on the BSE listing must meet the listing requirements it imposes.