Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

In Principle Approval

Kalpesh (Service) (66 Points)

16 December 2010

What is the meaning of In Principle Approval?

Reply
Follow
Share

10 Replies

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 16 December 2010

Originally posted by : CS Ankur Srivastava
	Term in principal approval used in under Clause 24(a) of the Listing Agreement. Means that a listed entity, before issuing any further shares or securities makes an application to the Stock Exchange having nationwide terminal for obtaining approval for listing of such shares or securities at the exchange. Where the company is not listed on any exchange having nationwide trading terminal, it agrees to obtain in principle approval from all the exchanges in which it is listed before issuing further shares or securities.

Upgrade to CAclubindia Pro. Subscribe Now!

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 17 December 2010

In principle approval means the concerned authority has agreed to the proposal generally without getting into the details of other required statutory / legal compliances.

6 Like

Jaideep (Service) (1368 Points)
Replied 17 December 2010

Agreed with Jayshree...

For example, taking in-principal approval form stock exchanges for listing of equity shares.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 17 December 2010

Term in principal approval used in under Clause 24(a) of the Listing Agreement.

Means that a listed entity, before issuing any further shares or securities makes an application to the Stock Exchange having nationwide terminal for obtaining approval for listing of such shares or securities at the exchange. Where the company is not listed on any exchange having nationwide trading terminal, it agrees to obtain in principle approval from all the exchanges in which it is listed before issuing further shares or securities.

1 Like

Rajeev kumar Nayak (ACS) (283 Points)
Replied 17 December 2010

Agreed with Ankur Sir.

Rajeev Nayak

Upgrade to CAclubindia Pro. Subscribe Now!

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 17 December 2010

Originally posted by : SAN...
	it means taking permission from your concerned principle ( CA under whom you are working as an article assistant).

Sorry SAN if it hurts, kindly just look the answers of others, when you are not aware of the term.

You are a student a learner, but look if somebody not answered this query, the answer would lead to slay the query.

In case of housing loan getting Approval in Principle simply means getting mortgage approval in place prior to finding the specific property which you're going to buy.

After in-principal approval, within the time limit specified, one has to submit the requisite document for approval.

1 Like

(Guest)

Originally posted by : CS Ankur Srivastava
	Term in principal approval used in under Clause 24(a) of the Listing Agreement. Means that a listed entity, before issuing any further shares or securities makes an application to the Stock Exchange having nationwide terminal for obtaining approval for listing of such shares or securities at the exchange. Where the company is not listed on any exchange having nationwide trading terminal, it agrees to obtain in principle approval from all the exchanges in which it is listed before issuing further shares or securities.

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 18 December 2010

Originally posted by : CA. Dashrath Maheshwari
	Originally posted by : SAN... it means taking permission from your concerned principle ( CA under whom you are working as an article assistant). Sorry SAN if it hurts, kindly just look the answers of others, when you are not aware of the term. You are a student a learner, but look if somebody not answered this query, the answer would lead to slay the query. In case of housing loan getting Approval in Principle simply means getting mortgage approval in place prior to finding the specific property which you're going to buy. After in-principal approval, within the time limit specified, one has to submit the requisite document for approval.

Dear Dashrath Sir

No need to say sorry Sir

i think we are here to share whatever knowledge we have and gain the same from others, so no quetion of getting hurted.

whatever i answered its from best of my knowledge.

i just tried to share my knowledge about whatever i know about the term " Principle"

Oky next time i will take care before answering such queries

thanks for the Correction & Clarification.

Regards
SAN.

1 Like

gaurav manral (delhi) (31 Points)
Replied 26 July 2013

sir please explain it little bit gaurav manral

S.Jegadeesan (CA Student) (637 Points)
Replied 06 May 2016

I think Ms.JayaShree's reply is more relevent. By the mean time Pls clarify the following

Nowadays ROC asked to select the Para 14 (a) as Yes in INC -1 while apply for a forex company.

If we select as Yes then we need to attach the in-Principle approval from RBI .But Pracically is it possible ? Whether RBI will give in-Priciple approval after name approval but before the incorporation?