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Admission and disclosure standards - Coggle Diagram
Admission and disclosure standards
A company whose Securities are admitted to trading on the LSE's Main Market must also comply with the continuing obligations contained in the Exchanges Admission and Disclosure Standards, these replicate the general disclosure obligations contained in the Listing Rules
The LSE has adopted these standards to enable it to enforce its market supervision fucntion
The company services team at the LSE processes applications for admins to trading and deals with all other aspects of the LSE's relationship with companies, the team does not review draft prospectuses, listing particulars or any other circulars
Eligiblity criteria
An application for admission to trading of any class of securities must relate to all securities of that class, issued or proposed to be issued or further securities of a class that is already admitted, issued or proposed to be issued
The company must be in compliance with the requirements of any securities regulator by which it is regulated and or any stock exchange on which it has securities admitted to trading
In the case of transferable securities, all such securities must be freely negotiable
Securities that are admitted to trading by the LSe must be capable of being traded in a fair orderly and efficient manner
The LSE may refuse an application for the admission if it considers that the applicants situation is Busch that admission of securities may be detrimental to the orderly operation or integrity of its markets or the applicant does not or will not comply with the standards or with any special condition imposed by the LSE
Companies must confirm that they meet the criteria and requirements of the market to which they are applying
To be admitted to trading, securities must be eligible for electronic settlement
Companies must provide details of a contact within their organisation who will be responsible for communications between the LSE and the Company. A company may wish to use a designated representative
Issuers must ensure that all information provided in connection with admission to trading is accurate complete and not misleading and must open and honest in all dealings with the LSE
Issues of securities
Whenever a listed company issues more securities those new securities must be listed and admitted to trading
Many companies especially those with active employee share schemes regularly issue new shares
To ease the administrative burden companies may choose to submit block listing information
Under this process a pool of shares is effectively pre listed and admitted to trading, this is known as a block listing
Following the initial application companies will submit block listing returns every six months setting out details of the amount of the pool that has been drawn down and issued