Listing Of

Securities
Pooja – 98
Poonam – 99
Pulkit- 101
Rajkumar – 103
Reema - 105
 Introduction:
 Listing means the admission of securities of a
particular company on a recognized stock
exchange.
 Listing is not compulsory under the Companies
act .
 It becomes necessary when a public limited
company wants to issue shares or debentures
to the public.
 A security is said to be listed when its name is
added to the list of securities in which trading
on a particular stock exchange is permitted.
 A financial instrument that is traded through an
exchange, such as the NSE, BSE or MCX. When
a private company decides to go public and
issue shares, it will need to choose an exchange
on which to be listed.
 6. Ability To Raise 1. To provide liquidity
Further Capital to securities

5. To protect 2. Mechanism for

shareholders and OBJECTIVES effective control and
investors interests. supervision of trading

4.4.
4.
ToTo
Toprovide
provide
provide free
free
free 3. To mobilize savings
for economic
negotiability
negotiabilityto
negotiability totostocks
stocks
stocks
development
 Advantages
1.Liquidity 4.Loan And Transparency

Implementation
2.Best price Plan 5.Easy Financing
COOJSD8YUHS
DUSAE Ostives

3.Periodic Report 6.Wide Publicity

Res
 Dis-advantages
1.Lengthy Process

2.It involves additional expenditure

Implementation
Plan

3.Company has to disclose the financial data and

other information
Res

4.Companies are subject to strict regulations

 Procedure for listing requirement
• Certified copy of memorandum & article of association;

• Prospectus & agreement with underwriters;

• Details of capital structure;

Implementation
• Copies of advertisement offering securities during the last 5 years;
Plan

• Copies of financial statement & auditor’s report for the last 5 years;

• Copy of shares & debentures, letter of allotment and letter of regret;

Res
• Details of the company since incorporation including changes in the capital
structure, borrowings, etc.;

• Details of shares or debentures issued for consideration other than cash;

• Statement defining distribution of shares and other details related to

commission, brokerage, discounts, or terms related to issue of shares;

• Agreement with financial institution, if any;

• Details of shares forfeited;

• Details of securities about which permission to deal with is applied for;

• A copy of consent from SEBI.

 Conditions:
 Shares of a company shall be offered to the public through the prospectus, and 25% of
securities must be offered.
 Date of opening of subscription, receipt of the application and other details should be
mentioned in the prospectus.
 The capital structure of the company should be wide and the securities of the company
should be in public interest
 The requirement for the Minimum issued is Rs. 3 Crores out of which 1.8 Crore must be
offered to the public.
 There is a requirement of at least 5 public shareholders in respect of every Rs. 1 Lakh of
fresh issue of capital and 10 shareholders for every Rs.1 lakh of the offer of existing capital.
 In the case of excess application money, the company has to pay interest within the range of
4% to 15% in case there is a delay in refund and delay should not be more than 10 weeks from
the date of closure of subscription list.
 The company having paid up share capital of more than Rs. 5 crores should get itself registered in
recognized stock exchange and compulsorily on the regional stock exchange.
 The auditor or secretary of the company has to declare that share certificate has been stamped
for listing so that shares belonging to promoter’s quota cannot be sold or transferred for 5 years.

o An article of Association must contain the following

provisions:

o Letter of allotment, Letter of regret and letter of right shall be issued.

o Consolidation and renewal certificates will be issued for a certificate of the division, letter of
allotment, transfer, and letter of rights, etc.
o The company has to notify stock exchange regarding the board meeting, change in the composition
of a board of directors and the case of new issue of securities in place of a reissue of forfeited
shares.
o Due notice should be given to stock exchange, for closing transfer books for a declaration of
dividend, right issue or bonus issue.
Thank
You