The stock exchanges exercise considerable control over the organisation of new issues. In terms of regulatory framework related to dealings in securities the new issues of securities which seek stock quotation/listing have to complete with statutory rules as well as regulations by the stock exchanges with the object of ensuring fair dealings in them. If the new issues do not conform to the prescribed stipulations, the stock exchanges would refuse listing facilities to them. This requirement obviously enables the stock exchange to exercise considerable control over the new issues market and is indicative of close relationship between the two.

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