Which of the following is a requirement for the eligibility of HGS?

The requirement for the eligibility of HGS (High Growth Shares) is that there must be a prospectus approved by the EEA (European Economic Area) competent authority. This ensures that the information provided to potential investors meets regulatory standards and offers adequate transparency about the investment. The approval process involves a thorough review to protect investors by ensuring that all relevant financial data, risks, and other material information about the company are disclosed.

Having a prospectus approved by a competent authority is particularly important in maintaining market integrity and investor confidence, as it reflects compliance with regulatory frameworks that govern financial markets in the EEA. This step safeguards investors from misleading information and enhances the credibility of the offering.

In contrast, while approval by any financial authority may seem relevant, the specific requirement is focused on the EEA competent authority to ensure investor protection within that regulatory framework. Minimum net profit or a shareholder vote are not standardized eligibility requirements for HGS listings, which further clarifies why the prospectus approval is central to this context.