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

• Submission of Letter of Application along

1. with the necessary documents.

• Payment of Listing Fees.

2.

• Collection of Listing Fees.-HDFC Bank

3.

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 CONT.

• Trading Permission by SEBI.

4.

• Payment of 1% Security with the designated SE.

5.

• Advertisement.
6.

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 LISTING FEES
 All companies listed on BSE are required to pay to BSE the Annual Listing Fees by
30th April of every financial year.
SCHEDULE OF LISTING FEES FOR THE FINANCIAL YEAR
2013-14
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

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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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