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Are you thinking of listing your public limited company through an IPO on the National Stock Exchange? Get Enterslice’s expert guidance for filing the DRHP, document preparation, and post-compliance management via our NSE listing services.
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Our NSE listing services include preparing the Draft Red Herring Prospectus, assisting with the appointment of a merchant banker, conducting due diligence, and liaising with SEBI for in-principle approval. Weโll also help you with IPO marketing & subscription, business model preparation, and annual disclosure filings with the ROC and SEBI.
Apply for the National Stock Exchange listing via an initial public offering (IPO) and raise funds on Indiaโs top exchange platform that has a capitalization of more than USD 4.5 trillion.
Our experts at Enterslice liaise with SEBI, NSE, and ROC throughout the application process. Connect with strategic investors and file your quarterly/annual results on time to avoid unnecessary penalties.
Indiaโs Largest Stock Exchange
Major Sectors- Tech, Banking, and Insurance
Number of Companies Listed: 2600+
Approx 700 SMEs Listed on NSE Emerge
Benchmark Index- Nifty Indices
Comply with SEBI Regulations
Now convert your private company to a public limited company for national stock exchange listings. Contact Enterslice and deep dive into the eligibility criteria for NSE listing through a 30-minute free consultation.
The benefits of the NSE listing for a company include seamless funding, enhanced brand image, credibility in the market, increased trust, and secure capital. Key advantages of National Stock Exchange listing are as follows:
You can easily raise funds for business expansion or make debt repayments through initial public offerings on Indiaโs largest trade platform after you list your company on the NSE. Mergers and acquisitions can be easier if you have enough investors.
Companies that are listed on the National Stock Exchange of India get enhanced visibility in the market and establish a better public profile, improving trust amongst the stakeholders.
The National Stock Exchange provides better liquidity options with an automated exchange trading platform, enabling investors to buy and sell shares seamlessly via a streamlined portal.
The market trends, demand, and supply provide a fair valuation of the companyโs shares and financial projections for the stakeholders, so they can make a sound decision while trading.
After an NSE listing IPO, you can attract long-term enhanced investment from high-profile stakeholders and investors in the market.
With strict SEBI compliance, you can establish proper corporate governance, which in turn increases the investor's confidence, ensuring proper fundraising.
You can also provide/offer stock options like ESOPs to attract the best talent in the market for your companyโs operations.
Compliance with NSE and SEBI norms improves corporate governance, transparency, and accountability.
The market ascertains the companyโs value based on demand and supply, providing a transparent price for its shares.
The list of documents required for the NSE listing IPO is mentioned below-
Company registration certificate
Trade license & regulatory approvals
Memorandum of Association (MOA)
Articles of Association (AOA)
TAN number of the entity
Permanent Account Number (PAN) of the company
PAN and Aadhaar card of directors and promoters
Share Certificates and pattern records
Register of Members, like directors and key managers
Register of charges
Minutes of the board and annual general meetings of the last 3 years
Agreement copies of shareholder and share subscriptions (if any)
ESOP scheme documents (if any)
Due diligence report
Audit the secretarial reports of the last three years
Vendor, supplier, and third-party agreements & contracts
A list of pending litigations (if any) and related disclosures
Disclosures on related party transactions
Labor law compliance paperwork attachments
Secretarial report
List of all Intellectual Properties and domains of the company
Data protection compliance
Fit and proper declarations
Criminal background and eligibility disclosures
Director Identification Number (DIN)
CVs and Resumes of all personnel
Affidavit for declaration on criminal conviction & SEBI debarment
Information on group companies and related parties, if any
Declarative statements on non-willful default
A credit report authenticated by a scheduled bank
Employee Stock Option Plan (ESOP), if any
Identification of the merchant banker and lead counsel
Director Signature Certificate (DSC)
Check out the types of securities for NSE listing for a company in India, as explained below:
Equity is a type of security that provides ownership to investors via shares. It is issued through initial public offering, follow-up public offering (FPO), rights issue and offer for sale (OFS).
A preferential share is a hybrid type of instrument, including cumulative, redeemable, convertible, and non-cumulative. Mostly for structured fundraising. It is one of the types of securities available for NSE listing for a company in India.
Debt instruments, such as partly, fully, or non-convertible debentures, secured/unsecured, corporate/green/infrastructure bonds, and PSUs, to raise long-term debt. The investors earn interest in their investment.
Investors buy them to convert them into equity at a later and specific date. It includes convertible debentures and preference shares. Common amongst strategic investors. This type of security often comes with a lock-in period.
Investment vehicles include Real Estate Investment Trust (REITs), Infrastructure Investment Trust (InvIT), Exchange Traded Fund (ETFs), and mutual funds. These donโt represent companies but are listed on the National Stock Exchange.
The list of IPO-specific regulatory documentation required for National Stock Exchange Listing includes the following:
A Draft Red Herring Prospectus (DRHP)
SEBIโs observation letter (post-approval)
Red Herring Prospectus (RHP)
Final Prospectus (filed with the ROC)
In-principle approval letter by the NSE
NSE listing application and execution agreement
Identification of the merchant banker
Due diligence certificates
Underwriting agreement by the merchant banker
RTI, escrow, and syndicate agreements
Tripartite agreement between (company, NSDL/CSDL, RTA)
Code of fair disclosure and conduct
Related transaction and whistleblower policy
Risk management, CRS, & vigil mechanism policy
Insider Trading Code as per the SEBIโs PIT-compliant rules
Find out how Enterslice will help you apply for the NSE listing IPO, as detailed below:
Firstly, weโll help you determine if youโre eligible for the National Stock Exchange listing. The company must be incorporated/converted as a public limited company. It should satisfy the minimum required paid-up capital, net worth, profit distribution, and personnel requirements.
Enterslice will assist you in appointing key personnel, including independent directors, secretarial/statutory auditor, lead counsel, RTA, and a SEBI-registered merchant banker. Your lead banker can be the market maker as well as who will also underwrite your IPO.
Our associates will help you modify the articles of association and memorandum of association, conduct due diligence on related party transactions, transfer pricing, legal, finance, operations, and tax. We'll also help you restate the audited financial statements in accordance with the applicable accounting standards.
The next step is to prepare the DRHP before the NSE listing application. The draft will include the companyโs overview, risk assessments, financial statements, background verification of promoters/directors, use of proceeds, and pending litigation/lawsuits (if any). We'll help you prepare the document in line with SEBI regulations.
The Securities and Exchange Board of India will review your application and publish it on their website, NSE, and the lead managersโ website to allow review from the public. The SEBI will consider issues it may deem fit and subsequently seek clarifications from you regarding the same.
In the next step, we'll liaise with the SEBI on your behalf in line with your lead counsel in case the former has any questions or concerns regarding disclosures or omissions thereof from the draft prospectus (DRHP). After potential changes and subsequent verification, the SEBI issues the observation letter.
We'll help you apply for the NSE listing IPO with the approved Red Herring Prospectus, with SEBIโs observation letter to the Registrar of Companies for further compliance with the Companies Act of 2013. The ROC will check if your prospectus includes the statutory disclosures and includes mandatory declarations. The authority will register the document if everything is in line with the relevant laws.
At this stage, weโll assist you in connecting with potential anchor investors before the Initial Public Offering is opened through presentations and marketing. Eligible stakeholders include mutual funds, insurance corporations, pension funds, banks, and other QIBs.
Your appointed merchant banker (lead) will determine the floor and cap price and disclose it on the Red Herring Prospectus (RHP), newspaper advertisements, and the NSE website. The price cap is announced, and the IPO is open for three days. Subsequently, the bids are collected by the Application Supported by Blocked Accounts (ASBA).
Once the issue is closed, the Book Running Lead Manager (merchant banker) will analyze the order book and finalize the cut-off price. The process allows the company to minimize the chances of issue overpricing in relation to market trends.
The appointed RTA will prepare the basics of allotment and submit it to the NSE, which then approves the same. The allotment consists of details of various stakeholders like shareholders, employees, retail investors, and QIBs. After finalization, the final allotment is submitted to the Registrar for registration if all mandates are met.
After finalization, the shares are credited to the Demat account of the successful users, and refunds are accordingly issued to the unsuccessful ones before the National Stock Exchange listing.
The NSE will grant the final approval if your listing agreement is executed (LODR), corporate governance is compliant, and the ISIN is activated. The National Stock Exchange will issue the circular, officially announcing that your shares are eligible for dealing on their exchange. You can now start trading on the platform after the NSE listing.
Confused about NSE Listing Process?
The timeline for the National Stock Exchange Listing for an IPO is as follows:
Convert your private company to a public limited company and appoint a lead manager, independent directors, lawyers, RTA, and auditors. You should also conduct financial and legal due diligence to ensure corporate governance is aligned with the SEBI and NSE rules.
Submit the Draft Red Herring Prospectus to the SEBI and NSE. The Securities and Exchange Authority will publish the documents on its website.
Promptly answer all clarifications and queries by the SEBI to ensure faster approval of the National Stock Exchange listing for your public limited company.
Network with anchor investors/QIBs and develop marketing strategies for your NSE listing IPO. Subsequently, decide the price cap and finalize the underwriting, syndicate, and RTA agreements.
Submit the Red Herring Prospectus with a final cut-off price to the Registrar of Companies (ROC), who will then register it in their records.
The Initial Public Offering will open for three days, and investors will bid through the ASBA. This stage will determine the book building prize.
The IPO closes after the 3rd day of listing, and the allotments are finalized. You should credit the shares and issue the refunds accordingly within the timeline. Subsequently, the NSE will grant final approval for trading on its platform, and your companyโs shares will be listed on the exchange.
The key eligibility criteria for NSE listing IPO are as follows:
Obtain expert guidance and meet the eligibility criteria for NSE listing.
Initial Public Offering (IPO) and Follow-on Public Offer (FPO) are the primary types of NSE listings that can be carried out, as explained below:
The main board listing is for large-cap and established companies with high-profile track records. Companies are required to follow heavy compliance after NSE listing with financial requirements.
A small and medium enterprise listing platform is designed for small, but emerging firms with slightly fewer mandates with respect to compliance and capital adequacy.
The compliance requirements after the NSE listing for a company are as follows:
From eligibility check to NSE listing, weโve got you covered at Enterslice.
Enterslice is a trusted compliance partner for SMEs and business giants. With over 10,000 experts, we bring in 10+ years of proven experience in business restructuring, tax planning, and fundraising. Connect with authentic anchor investors and raise capital seamlessly. Key reasons for trusting us for NSE listing services for a company:
The NSE emerge is a platform specifically designed for small and medium enterprises and startups in India. As an SME, you can raise funds, expand your business, and enhance your visibility in the market with cost-effective compliance requirements compared to large companies.
An IPO is a procedure that allows private companies to offer their shares to the public through a stock exchange. The company must first convert into a public limited entity prior to the listing application to the SEBI, ROC, and NSE. On the contrary, a follow-on public offer is basically listing new shares by an already existing (listed) company on the National Stock Exchange. The IPO pricing is determined via a book-building process, whereas the FPO band is mostly market-driven as per the latest trends.
The list of financial documentation for listing on the National Stock Exchange is as follows:
Yes, the lock-in period is one year if the promoter has more than 20% of the holding of the Initial public offering.
Yes, normal IPOs must have at least 25% public shareholding, with 20% minimum for promoters. However, the large issues of INR 4000 and more should be listed with 10%, then subsequently go up to 25%.
The National Stock Exchange will levy the following fines (in INR per day) in case of delay in submissions under the SEBI LODR (Listing Obligations and Disclosure Requirements) Regulations of 2015:
The NSE has the power to freeze promoter shareholding (demat accounts), restrict transfers and pledge of shares, label your company as non-compliant, and suspend trading of your entity's shares. They may also move your company under a surveillance and monitoring category. The SEBI may impose additional penalties, ranging between INR 10 lakhs and 25 crores, in case of serious non-compliance. The authority may also debar directors/promoters, file lawsuits for criminal prosecution against allegations like fraud, insider trading, and willful market manipulation.
A DRHP is a draft document filed with SEBI and the NSE to obtain approval before listing a company on the National Stock Exchange. The documents include details about the entityโs finances, legal proceedings (if any), personnel, risk areas, and business due diligence.
At Enterslice, we'll help you with: 1) company conversion; 2) revision of MOA/AOA; 3) due diligence; 4) KYC compliance; 5) insider trading and other SEBI-mandated policy drafting; 6) agreement and contract formation; 7) preparation of Draft Red Herring Prospectus and modification; 8) coordinate with the NSE, ROC, and SEBI; 9) quarterly and annual disclosures and filings; and 10) appointing mandatory personnel like bankers and legal professionals.
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
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