LISTING OF SECURITIES

Apr 9, 2023 Department of Commerce, Mar Ivanios College

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LISTING OF SECURITIES

George V James

Roll no:- 12


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CONTENTS

Meaning

Listing Regulations

Objectives of Listing

Advantages & Disadvantages of Listing

Listing Requirements

Steps in Listing

Delisting


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Meaning

Listing refers to the admission of the securities

of a company on a recognised stock exchange for

trading .

Listing of securities is undertaken with the

primary objective of providing marketability,

liquidity and transferability of shares.


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Listing Regulations

Comply with the Companies Act, SCRA, SEBI and rules &

regulations of the exchange.

To be submitted along with the application for listing:-

1. Memorandum of Associations, Articles of

Association, Prospectus, Directors’ report, Annual Accounts,

Agreement with Underwriters, etc.

2. Company’s activities, capital structure, distribution

of shares, dividends and bonus shares issued, etc.


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Objectives of Listing

Provide ready marketability, liquidity &

negotiability to securities;

Mobilize savings for economic development;

Ensure proper supervision and control of dealing;

Protect interest of investors by ensuring full

disclosures.


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Advantages of Listing

Provides Liquidity to securities.

Regular information

Easy Transferability

Income tax benefit

Transparency in dealing.

Helps the company to gain national importance and widespread

recognition.

Helps in rising additional capital.


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Disadvantages

Listed companies are subjected to do various

regulatory measures of the stock exchange and

SEBI.

Essential information has to be submitted by the

listed companies to stock exchange.

Annual meeting and annual general report.


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Listing Requirements

For this purpose companies have been classified

into 2 groups:-

1. Large Cap Companies (minimum issue size

of Rs.10 crores and market capitalization of not less

than Rs.25 crores)

2. Small Cap Companies (minimum issue size

of Rs.3 crores and market capitalization of not less

than Rs.5 crores)


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Steps in Listing

1.• Submission of Letter of Application

along with the necessary documents.

2.• Payment of Listing Fees.

3.• Collection of Listing Fees.-HDFC

Bank


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CONT.

4.• Trading Permission by SEBI.

5.• Payment of 1% Security with the

designated SE.

6.• Advertisement.

LISTING FEES All companies listed on BSE are required to pay to BSE the Annual

Listing Fees by 30th April of every financial year.

Particulars Amount (in Rs.)

Initial Listing Fees Rs.20,000

Listed Capital (in Rs. Crs) Annual Listing Fees (in Rs.)

i. Up to 50 Rs.1,00,000

ii. Above 50 to 100 Rs.1,66,250

iii. Above 100 to 150 Rs.1,90,000

iv. Above 150 to 200 Rs.2,28,000

v. Above 200 to 250 Rs.2,61,000

SCHEDULE OF LISTING FEES FOR THE FINANCIAL YEAR 2013-14


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DELISTING

Delisting is the process of termination of

permission given to a listed company from trading its

securities on the stock exchange.

They can be in 2 ways:-

1. Compulsory Delisting

2. Voluntary Delisting


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1. Compulsory Delisting

It may be in the following ways:-

a. Non-payment of listing fee or violation of

listing agreement.

b. Thin/ negligible trading or thin

shareholding base.

c. Non- redressel of grievances.

d. Unfair trade practices at the behest of

promoters or managers, such as issuing of duplicate or

fake shares by the management.


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2. Voluntary Delisting

It may be in the following ways:-

a. Unable to pay listing fee.

b. Business is sick/ closed/ suspended.

c. Capital base is small.

d. Mergers, acquisitions, takeovers.


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LISTING OF SECURITIES

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