LISTING OF SECURITIES

Dr. Manish dadhich

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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, 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 with

1. 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
5. SE.

• 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

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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THX

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