Securities to be dealt with in stock exchanges.40. (1) Every company making public offer shall, before making such offer, make an application to one or more recognised stock exchange
or exchanges and obtain permission for the securities to be dealt with in such stock exchange or exchanges.(2) Where a prospectus states that an application under sub-section (1) has been made, such prospectus shall also state the name or names of the stock exchange in which the securities shall be dealt with.(3) All monies received on application from the public for subscription to the securities shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose other than-
| (a) | - | for adjustment against allotment of securities where the securities have been permitted to be dealt with in the stock exchange or stock exchanges specified in the prospectus; or |
| (b) | - | for the repayment of monies within the time specified by the Securities and Exchange Board, received from applicants in pursuance of the prospectus, where the company is for any other reason unable to allot securities. |
(4) Any condition purporting to require or bind any applicant for securities to waive compliance with any of the requirements of this s
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