LISTING OF SECURITIES NASRIN P A ROLL NO

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LISTING OF SECURITIES NASRIN P. A ROLL. NO. 28 MBA(FT)

LISTING OF SECURITIES NASRIN P. A ROLL. NO. 28 MBA(FT)

Introduction to Stock Exchange • The stock exchange provides an organized market place for

Introduction to Stock Exchange • The stock exchange provides an organized market place for the investors to freely buy and sell securities. • It is an open auction market where buyers and sellers compete with each other and arrive at fair price. • These transactions are widely quoted in the magazines , periodicals etc. • The dealings of buying and selling will not result in fair prices if the investors do not have an adequate information

Listing of Securities • Listing of securities means of the admission of a security

Listing of Securities • Listing of securities means of the admission of a security for trading in a particularly stock exchange. • Stock exchange authorities verifies that the securities must confirm its standards. • The company whose securities are listed has to comply with the terms and condition of the concerned stock exchange. • The company has to furnish the information about the company to stock exchange not only at the time of listing but afterwards also till its security is listed in a stock exchange.

Benefits by Listing of Securities 1. Listing makes the securities more prestigious and enhance

Benefits by Listing of Securities 1. Listing makes the securities more prestigious and enhance their marketability and liquidity. 2. Listing provides publicity and higher status to the listed companies 3. Listing provides free transferability of shares and safeguard the interest of the investors. 4. It helps the investors in taking their investment decisions

Benefits contd…. 5. Listed companies are eligible for certain fiscal concessions under Income tax

Benefits contd…. 5. Listed companies are eligible for certain fiscal concessions under Income tax like carry forward of and set off the losses. 6. Listed companies are in a better position to obtain loans and guarantees from the financial institutions. 7. Listed securities command a higher collateral value for bank credit

Requirements for Listing of securities 1. Memorandum and Articles of Association 2. Minimum public

Requirements for Listing of securities 1. Memorandum and Articles of Association 2. Minimum public offer , share holders ownership and reservations 3. Prospectus 4. Allotment of shares

Requirements contd…. 5. Publicity 6. Cost of public issues of capital 7. Underwriting agreement

Requirements contd…. 5. Publicity 6. Cost of public issues of capital 7. Underwriting agreement 8. Listing agreement

1. Memorandum and Articles of Association It must contain the following statutory provisions: 1.

1. Memorandum and Articles of Association It must contain the following statutory provisions: 1. A common form of transfer shall be used 2. Fully paid shares will be free from all lien 3. Registration of transfer shall not be refused

Contd …. . 4. Any amount paid up in advance of calls on any

Contd …. . 4. Any amount paid up in advance of calls on any share may carry interest 5. There shall be no forfeiture of unclaimed dividends before the claim becomes barred by law 6. Option or right to call of shares shall not be given to any person

2. Minimum Public Offer and Shareholders Ownership and Reservations • At least 25% of

2. Minimum Public Offer and Shareholders Ownership and Reservations • At least 25% of each class of securities issued b the company must be offered to the public for subscription. • The minimum issued capital of a company should not be less than Rs. 3 crore of which a minimum of Rs. 0. 75 crore should be offered to public.

Contd…. • The amendment also incorporates a provision under which the central government can

Contd…. • The amendment also incorporates a provision under which the central government can relax this 25% limit for government companies. • Relaxation has been incorporated in order to facilitate the listing of companies where government is proposing to disinvest share capital

a) Shareholders 1. At least 10 public shareholders for every Rs. 1 lakh fresh

a) Shareholders 1. At least 10 public shareholders for every Rs. 1 lakh fresh issue and, • At least 20 public shareholders for every Rs. 1 lakh of offer for sale of exiting capital

b) Minimum Subscription • Company must receive a minimum of 90%subscription against entire issue

b) Minimum Subscription • Company must receive a minimum of 90%subscription against entire issue • In case the subscription to extent is not received, the entire amt collected with the applications would have to refunded to the applicants at the end of 120 days from the date of opening of the issue

• In case application money is not returned within next 10 days the

• In case application money is not returned within next 10 days the company and directors shall be liable to return the same with the interest at the rate of 15%p. a • The company is not allowed to tag an offer of one kind of security with any other kind of security

c) Reservation in Issues • On the first page should state the size of

c) Reservation in Issues • On the first page should state the size of public issue, no. of shares/debentures at par or at premium • The prospectus should also provide the details of the public issue • As per SEBI guidelines reservations and firm allotments together with the promoters contribution should not exceed 75% of the total issue amount

3. Prospectus

3. Prospectus

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