law: Companies Act, 2013 
  40.
  
    Securities
  
  to be dealt with in stock exchanges.
  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.
  1.     
  2.     
  3.     
  4.      Any condition
  
  purporting to require or bind any applicant for securities to waive compliance
  
  with any of the requirements of this section shall be void.
  5.      If a default is made
  
  in complying with the provisions of this section, the company shall be
  
  punishable with a fine which shall not be less than five lakh rupees but which
  
  may extend to fifty lakh rupees and every officer of the company who is in
  
  default shall be punishable with imprisonment for a term which may extend to
  
  one year or with fine which shall not be less than fifty thousand rupees but
  
  which may extend to three lakh rupees, or with both.
  6.      A company may pay
  
  commission to any person in connection with the subscription to its securities
  
  subject to such conditions as may be prescribed.