What does a Recognised Stock Exchange do? There is very little information about what a Recognised Stock Exchange does. There are various duties assigned by SEBI that a Recognised Stock Exchange has to perform within the stipulated period and report to SEBI. Here I have mentioned the duties and obligations of a Recognised Stock Exchange for planning the listing arrangement. Now check out more information about “What does a Recognised Stock Exchange do?” from below….
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What does a Recognised Stock Exchange do?
Duties of Recognised Stock Exchange:
1. Recognized stock exchanges are mandated to regularly update the website with information provided by listed entities. They need to make information available to investors so that investors are aware of the company and the regular functioning of the company. In need to update reports, statements, any documents relevant to stakeholders, filings, or any other information that would influence investors’ decision-making. They need to publish the information in a manner that is very easy to understand for the general public, it should be in an organized manner, and it should be readily available to investors (free of cost to access).
2. In the case of the scheme of arrangement, the recognized stock exchange has to approve the draft scheme of arrangement along with the scheme by giving a no-objection certificate to SEBI within the prescribed period. The period is as follows:
- Within 30 days of receipt of the draft scheme of arrangement.
- Within 7 days of receipt of satisfactory reply on clarification from listed entities.
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3. If listed entities are not complying with the laws and regulations, the recognized stock exchange may, from time to time, impose penalties or fines on them, inspect the books or any other documents, or call for any document that may be relevant to ascertain the basic facts of the transactions.
4. The recognized stock exchange along with the depositories has to ascertain whether the listed entities are operating by the relevant provisions of the laws applicable to them, whether they are operating under the directions of the Board, and whether they are complying with the orders or notices of the Court.
5 . The recognized stock exchange has to bring to the notice of the Court or any tribunal at the time of approval of the draft scheme of arrangement any observation or any objection or suggestion beneficial to the stakeholders.
6. The recognized stock exchange needs to monitor whether the listed entities are disclosing relevant facts and figures as per the Act. Whether they are complying with the provisions of the regulations. There are various reporting responsibilities on the stock exchange. They need to submit reports to the Board mentioning a detailed analysis of the functioning of the listed entities and whether they have complied with the law or not.
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