LISTING OF SECURITIES

UNIT-2 LESSON-5

LISTING OF SECURITIES
Listing means admission of securities for the purpose of dealing in a recognised stock exchange. The securities may be of any public limited company ,central or state government ,quasi-government ,and other financial institutions/corp[orations ,municipalities,etc. The objectives of listing are : To provide liquidity to securities Mobilizing saving for economic development Protecting interest of investors by ensuring full disclosures
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Cont.
A company intending to have its securities listed in a stock exchange has to comply with the listing requirements prescribed by the exchange. These are : FOR NEW COMPANIES : New companies can be listed in a stock exchange, if their issued and subscribed equity capital after the public issue is Rs. 10 crores.In addition to this ,issuer company should have a post- issue net worth(equity capital + free reserve) of Rs.20 crores
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For new companies in high technology:

The following rules are applicable: High technology companies are internet, information technology ,e-commerce,telcommunication,media including adveritisement ,entertainment etc . Minimum post issue paid-up quity capital should b Rs5 crores Minimum market capitalisation should be Rs. 50 crores(it is calculated by post issue subscribed number multiply by number of equity share with issue price) Post issue net worth (equity capital + free reserve)will be of Rs 20 crores
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MINIMUM PUBLIC OFFER

As per Rule 19(2)(b) of securities contract (Regulation )Rules ,1957 securities of a company can be listed on a stock exchange only when at least 25 percent of each class or kind of securities are offered to public for subscription. FOR COMPANIS LISTED ON OTHER STOCK EXCHANGES : The companies listed on other stock exchange and seeking listing on BSE are required to fulfil l the following criteria:
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1.Minimum issued quity capitalof Rs.3 crores

2.at least three years of track record of profit 3.minimum net worth Rs.20 crore 4.minimum market capitalisation of Rs 20 crore 5.Trading for a minimum 50% of the total trading days during the same six months on any stock exchange 6.Minimum average volume traded per day during last three complete months should be 1,000 shares and minimum 5 traders per day 7.25 % of the issued capital should be with public,and minimum 15 shareholdrs per Rs. 1 lakh of capital in th public category 8. The company should be agreeable to sign an agreement with CDSL an NSDL , for DEMAT trading.

For companies delisted already and seeking relisting of exchange :

Permission to use the nam of the exchang Submission of letter of application Allotment of securities Trading permission Security deposit the company required one percent of issue amount with the regional stock exchange before th issue opens Listing Fees Listing agreement
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