Prior in principal approval query

Dear Members

 

Is there any difference between aplication for "prior in principle approval" & "in principle approval". I have format of application for in principle approval, can same be used also for prior in principle approval?

Replies (6)

Yes there is a big difference. In case of allotment of securities like equity shares in a listed company, first you have to obtain in principle approval under clause 24(a) from the stock exchange. Practically this clause 24(a) approval is for your proposed allotment. After getting this approval you have to proceed further for allotment.

 

Next in principle approval is for listing of securities after formal allotment followed by final listing and trading approval from the STX.

 

Regards

Thank You Ankur Sir,,,,

Therefore application under Clause 24(A) is for Prior in principle approval.And final in principle approval is to be taken after allotment of securities. Am I Right Sir?

Here is the right sequence:

 

  1. In principle approval under clause 24(a)
  2. In principle approval for Listing of securities
  3. Final Listing and trading approval/circular

 

After getting In principle approval for Listing of securities, you have to apply to NSDL and CDSL for capital updation circular. On the basis of this circular you have to apply for Final Listing and trading approval/circular.

 

There is one funda for all this---simply read the approval letter received from STX carefully for next instruction and activity.

 

Regards

Rightly explained by Ankur ji.....

Again 1 point to Ankur

Thax a ton Ankur Sir!

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