LISTING SECURITIES IN STOCK EXCHANGE

A company, desirous of listing its securities on the Exchange, shall be required to file an application, in the prescribed form, with the Exchange before issue of Prospectus by the company, where the securities are issued by way of a prospectus or before issue of 'Offer for Sale', where the securities are issued by way of an offer for sale. The company shall be responsible to follow all the requirements specified in the Companies Act, the listing norms issued by SEBI from time to time and such other conditions, requirements and norms that may be in force from time to time and included hereafter in these Bye-laws and Regulations to make the security eligible to be listed and for continuous listing on the Exchange.

The listing of companies in the capital market implies the admission of the shares of that company to dealings on a recognized stock exchange. The securities or shares may be of any public limited company, Central or state government, quasi governmental and other financial institutions/corporations, municipalities and so on.

The objectives of listing are to:

• Provide liquidity to shares
• Mobilize savings for economic development
• Protect interest of investors by ensuring full disclosures

Most stock exchanges have a listing department to grant approval for listing of shares of companies in accordance with the various provisions of the law.

A company intending to have its share listed has to comply with the listing requirements prescribed by the exchange. Companies that have been classified as large cap companies have slightly different rules from those classified as small cap. Some of the common requirements are explained below.

Different minimum post-issue paid-up capital and the minimum issue size can be prescribed for large and small cap companies. The same is the case with minimum income, turnover and number of shareholders post-issue.

Most exchanges insist on a due diligence study conducted by an independent team of Chartered Accountants or Merchant Bankers appointed by the exchange.

A company intending to have its share listed has to comply with the listing requirements prescribed by the exchange. Companies that have been classified as large cap companies have slightly different rules from those classified as small cap. Some of the common requirements are explained below.

Different minimum post-issue paid-up capital and the minimum issue size can be prescribed for large and small cap companies. The same is the case with minimum income, turnover and number of shareholders post-issue.

Most exchanges insist on a due diligence study conducted by an independent team of Chartered Accountants or Merchant Bankers appointed by the exchange.

The applicant, promoters and/or group companies, should be in compliance of the listing agreement.

Most exchanges follow a set procedure for companies that wish to offer their scrips through public issues. The companies are required to obtain the exchange's prior permission to use its name in the prospectus or offer for sale documents before filing the same with the concerned office of the Registrar of Companies.