Overview of Portfolio Management System When an individual investor or company has a sufficient...
Listing means the admission of securities of a company to trading on a stock exchange. Listing is not compulsory under the Companies Act 2013/1956. It becomes necessary when a Public Limited Company wants to issue shares or debentures to the public. When securities are listed on a stock exchange, the company has to comply with the requirements of the exchange.
The listing provides an exclusive privilege to securities on the stock exchange. Only listed shares are quoted on the stock exchange. Stock exchange provides transparency in transactions of listed securities and equality and competitive conditions. Listing is beneficial for the company, to the investor, and to the public at large.
1. Applicant Company, desirous of getting listed should comply with the required Eligibility criteria as prescribed by the stock exchange. Minimum Listing Requirements for New Companies-
2. Permission to Use the Name of BSE Listing Process in Issuer Company’s Prospectus
Companies have to take prior approval from BSE to use the name of BSE in their prospectus or offer for sale documents before filing the same with the concerned office of the Registrar of Companies
3. Submission of Letter of Application
A Letter of Application need to be submitted to all the stock exchanges where they want to get it listed before filing to the Concerned ROC
4. Allotment of Securities
As per the Listing Agreement, a company is required to complete the allotment of securities within 30 days of the date of closure of the subscription list to the public
5. Trading Permission
After the completion of allotment, within 7 working days, the issuer Company has to complete the formalities for trading at all the stock exchanges, where the securities are to be listed.
6. The requirement of 1% Security
Companies have to deposit 1% of the issue amount with the designated stock exchange before the issue opens.
7. Listing Fees
All listed companies are required to pay to BSE, an Annual Listing Fees by 30th April of every financial year
8. Compliance with the Listing Agreement
When companies get listed at stock exchanges, whether it is BSE/NSE Listing Process they are required to enter into an agreement which is called the listing Agreement under which they are required to file certain compliances and disclosures which are given by listing Agreement, failing which the company may face some disciplinary action, including suspension/delisting of securities. Under listing agreements, all the terms and conditions are written on the basis of which the company has to perform like
If you are desirous of getting the securities of your Company listed on the recognized stock exchanges, then Enterslice can help you in this regard. For details, visit our website www.enterslice.com or email your queries at firstname.lastname@example.org.
Read our article: All you need to know about SEBI’s Insider Trading Regulations