law: Companies Act, 1956
  Sec 73    -    
  
  Allotment of shares and debentures to be dealt in on stock exchange 
  (1) Every company, intending to offer shares
  
  or debentures to the public for subscription by the issue of a prospectus
  
  shall, before such issue, make an application to one or more recognized stock
  
  exchanges for permission for the shares or debentures intending to be so
  
  offered to be dealt with in the stock exchange or each such stock exchange.
  (1A) Where a prospectus, whether issued
  
  generally or not, states that an application under sub-section (1) has been
  
  made for permission for the shares or debentures offered thereby to be dealt in
  
  one or more recognized stock exchanges, such prospectus shall state the name of
  
  the stock exchange or, as the case may be, each such stock exchange, and any
  
  allotment made on an application in pursuance of such prospectus shall,
  
  whenever made, be void, if the permission has not been granted by the stock
  
  exchange or each such stock exchange, as the case may be before the expiry of
  
  ten weeks from the date of the closing of the subscription lists :
  Provided  that where an appeal against the
  
  decision of any recognized stock exchange refusing permission for the shares or
  
  debentures to be dealt in on that stock exchange has been preferred under
  
  section 22 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956),
  
  such allotment shall not be void until the dismissal of the appeal.
  (2) Where the permission has not been applied
  
  under sub-section (1) or, such permission having been applied for, has not been
  
  granted as aforesaid, the company shall forthwith repay without interest all
  
  moneys received from applicants in pursuance of the prospectus, and, if any
  
  such money is not repaid within eight days after the company becomes liable to
  
  repay it, the company and every director of the company who is an
  
  officer-in-default shall, on and from the expiry of the eighth day, be jointly
  
  and severally liable to repay that money with interest at such rate, not less
  
  than four per cent and not more than fifteen per cent, as may be prescribed,
  
  having regard to the length of the period of delay in making the repayment of
  
  such money.
  (2A) Where permission has been granted by the
  
  recognized stock exchange or stock exchanges for dealing in any shares or
  
  debentures in such stock exchange or each such stock exchange and the moneys
  
  received from applicants for shares or debentures are in excess of the
  
  aggregate of the application moneys relating to the shares or debentures in
  
  respect of which allotments have been made, the company shall repay the moneys
  
  to the extent of such excess forthwith without interest, and if such money is
  
  not repaid within eight days, from the day the company becomes liable to pay
  
  it, the company and every director of the company who is an officer in default
  
  shall, on and from the expiry of the eighth day, be jointly and severally
  
  liable to repay that money with interest at such rate, not less than four per
  
  cent and not more than fifteen per cent., as may be prescribed, having regard
  
  to the length of the period of delay in making the repayment of such money.
  (2B) If default is made in complying with the
  
  provisions of sub-section (2A), the company and every officer of the company
  
  who is in default shall be punishable with fine which may extend to fifty
  
  thousand rupees, and where repayment is not made within six months from the
  
  expiry of the eighth day, also with imprisonment for a term which may extend to
  
  one year.
  (3) All moneys received as aforesaid shall be
  
  kept in a separate bank account maintained with a Scheduled Bank until the
  
  permission has been granted, or where an appeal has been preferred against the
  
  refusal to grant such permission, until the disposal of the appeal, and the
  
  money standing in such separate account shall, where the permission has not
  
  been applied for as aforesaid or has not been granted, be repaid within the
  
  time and in the manner specified in sub-section (2), and if default is made in
  
  complying with this sub-section, the company, and every officer of the company
  
  who is in default, shall be punishable with fine which may extend to fifty
  
  thousand rupees.
  (3A) Moneys standing to the credit of the
  
  separate bank account referred to in sub-section (3) shall not be utilized for
  
  any purpose other than the following purposes, namely :
  (a) adjustment against allotment of shares,
  
  where the shares have been permitted to be dealt in on the stock exchange or
  
  each stock exchange specified in the prospectus ; or
  (b) repayment of moneys received from
  
  applicants in pursuance of the prospectus, where shares have not been permitted
  
  to be dealt in on the stock exchange or each stock exchange specified in the
  
  prospectus, as the case may be, or, where the company is for any other reason
  
  unable to make the allotment of share.
  (4) Any condition purporting to require or
  
  bind any applicant for shares or debentures to waive compliance with any of the
  
  requirements of this section shall be void.
  (5) For the purposes of this section, it shall
  
  be deemed that permission has not been granted if the application for
  
  permission, where made, has not been disposed of within the time specified in
  
  sub-section (1).
  (6) This section shall have effect :
  (a) in relation to any shares or debentures
  
  agreed to be taken by a person underwriting an offer thereof by a prospectus,
  
  as if he had applied therefor in pursuance of the prospectus ; and
  (b) in relation to a prospectus offering
  
  shares for sale, with the following modifications, namely,
  (i) references to sale shall be substituted
  
  for references to allotment ;
  (ii) the persons by whom the offer is made,
  
  and not the company, shall be liable under sub-section (2) to repay money
  
  received from applicants, and references to the company's liability under that
  
  sub-section shall be construed accordingly ; and
  (iii) for the reference in sub-section (3) to
  
  the company and every officer of the company who is in default, there shall be
  
  substituted a reference to any person by or through whom the offer is made and
  
  who is knowingly guilty of, or willfully authorizes or permits, the default.
  (7) No prospectus shall state that application
  
  has been made for permission for the shares or debentures offered thereby to be
  
  dealt in on any stock exchange, unless it is a recognized stock exchange.