Listing Securities
Listing of Securities
Chapter Objectives
To understand the concept of listing of securities
To know the criteria for listing shares
To learn the listing procedure
To understand the concept of delisting
Concept of Listing of Securities
It means the admission of shares of a public limited
company on the stock exchange for the purpose of trading. A company intending to have its shares listed on the stock exchange has to write an application to one or more recognised stock exchanges.
A company becomes qualified to list its shares after getting the prior permission from the stock exchange.
Some of the advantages of listing of securities are:
Liquidity
Best prices
Wide publicity
Some disadvantages of listing of securities are:
Subjected to various regulatory measures
Expensive exercise
Criteria for Listing
A company that wants its securities to be listed in the stock exchange has to fulfil certain minimum requirements, such as:
Minimum issued capital: A company should have minimum issued
capital of Rs. 3 crores and the minimum public offer must be of Rs. 75 lakhs. Listing on multiple exchanges: It is essential for a company to get listed in the stock exchange if its paid up capital is above Rs. 5 crores.
Number of shareholders: A company must have a minimum ten shareholders. Articles of Association: The Articles of Association must be prepared in line with the sound corporate practice of a company.
Advertisement: A company during the subscription period must not advertise by thanking the public for their overwhelming response.
Applying mode: A company must issue a prospectus, which provides information on how the investor should apply for the shares.
Public offer size: A company, in the first page of the prospectus must state the size of the public offer and the value of shares.
Listing Procedure
To get the listing permission from the stock exchange, a company has to undertake
Chapter Objectives
To understand the concept of listing of securities
To know the criteria for listing shares
To learn the listing procedure
To understand the concept of delisting
Concept of Listing of Securities
It means the admission of shares of a public limited
company on the stock exchange for the purpose of trading. A company intending to have its shares listed on the stock exchange has to write an application to one or more recognised stock exchanges.
A company becomes qualified to list its shares after getting the prior permission from the stock exchange.
Some of the advantages of listing of securities are:
Liquidity
Best prices
Wide publicity
Some disadvantages of listing of securities are:
Subjected to various regulatory measures
Expensive exercise
Criteria for Listing
A company that wants its securities to be listed in the stock exchange has to fulfil certain minimum requirements, such as:
Minimum issued capital: A company should have minimum issued
capital of Rs. 3 crores and the minimum public offer must be of Rs. 75 lakhs. Listing on multiple exchanges: It is essential for a company to get listed in the stock exchange if its paid up capital is above Rs. 5 crores.
Number of shareholders: A company must have a minimum ten shareholders. Articles of Association: The Articles of Association must be prepared in line with the sound corporate practice of a company.
Advertisement: A company during the subscription period must not advertise by thanking the public for their overwhelming response.
Applying mode: A company must issue a prospectus, which provides information on how the investor should apply for the shares.
Public offer size: A company, in the first page of the prospectus must state the size of the public offer and the value of shares.
Listing Procedure
To get the listing permission from the stock exchange, a company has to undertake