Securities and Exchange Board of India
Deputy General Manager
Market Regulation Department
Tel : 22845355 Fax: 22845761
MRD/Policy/Cir – 35 /2003/29/09
September 29, 2003
The Executive Directors/Managing Director/
Administrators of All Stock Exchanges
Sub : Listing of further issue of capital
1. SEBI had, vide its circular no. SMDRP/Policy/Cir-15 /2001 dated March 08, 2001 mandated, inter alia, that a listed company shall be required to obtain ‘in-principle’ approval for listing from the stock exchanges before issuing further shares or securities.
2. The Government of India vide circular No.F.No.1/9/SE/2003 dated April 23, 2003 has, inter alia, withdrawn the requirement relating to compulsory listing by companies on regional stock exchange. Keeping in view the letter and spirit of the said circular, it has been decided that if a company is listed on any stock exchange which is having nationwide trading terminals, it would be a sufficient compliance of the aforesaid SEBI circular, if it obtains ‘in-principle’ approval from such stock exchange(s) for further issue of shares or securities. Where the company is not so listed on any stock exchange having nationwide trading terminals, it shall continue to obtain ‘in-principle’ approval from all the exchanges where it is listed as was provided in the aforesaid Circular dated March 08, 2001.
3. This shall come into force with immediate effect.
4. The stock exchanges are directed to,
4.1 amend the listing agreement by submitting the relevant clause with the following :
“The company agrees to obtain ‘in-principle’ approval for listing from the exchanges having nationwide trading terminals where it is listed, before issuing further shares or securities. Where the company is not listed on any exchange having nationwide trading terminals, it agrees to obtain such ‘in-principle’ approval from all the exchanges in which it is listed before issuing further shares or securities.”
4.2 bring the provisions of this circular to the notice of the member brokers/clearing members/listed companies of the Exchange and also to disseminate the same on the website for easy access to the investors; and
4.3 communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of October 2003.
5 This circular is being issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
V S SUNDARESAN