Conditional Listing Application (CLA)

A Conditional Listing Application (CLA) is a formal request submitted by a company to a stock exchange seeking approval to list its shares, contingent upon meeting specific conditions outlined by the exchange. These conditions often include regulatory filings, financial audits, and completion of corporate governance requirements. The CLA allows a company to proceed with the listing process while it finalizes outstanding conditions, ensuring compliance before its shares can be traded publicly.

Example

A startup preparing for an initial public offering (IPO) might file a CLA with a stock exchange, agreeing to meet the necessary financial disclosure requirements before its shares are officially listed.