A company wishing to place its securities on a stock exchange is required to submit an application to the Stock Exchange in the prescribed form before the prospectus is issued by the company when the securities are issued by prospectus or before the issuance of the “offer to sell” when the securities are issued through an offer to sell. The basic criterion on which the entire listing agreement is based is corporate governance. At present, 54 clauses of the listing agreement are all based on this concept. In addition, there is a clause that deals specifically with corporate governance, i.e. Article 49. Through the listing agreement, the Exchange ensures, among other things, on behalf of SEBI, that companies comply with good corporate governance practices. As such, the listing agreement is of great importance and is implemented under the common seal of a company.