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LISTING OF

SECURITIESPRESENTATION BY

H.L.YADAV

(ASST. PROFESSOR)

DMS ,GGV, BILASPUR

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The objectives of listing

provide Ready marketability, liquidity &negotiability to securities;

mobilize savings for economic

development;

Ensure proper supervision and control

of dealing

Protect interest of investors byensuring full disclosures.

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ADVANTAGES OF LISTING

Liquidity

Best price for securities

Transparency in dealing

Enables the management to broaden

and diversify shareholding

Helps the company to gain national

importance and widespread

recognition

Helps in rising additional capital

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KEY PROVISION IN LISTING

AGREEMENT(BSE)

1. Minimum Listing Requirements forNew Companies

A) In respect of Large Cap Companies

The minimum post-issue paid-up capital of theapplicant company shall be Rs. 3 crores

The minimum issue size shall be Rs. 10 crores;

and

The minimum market capitalization of theCompany shall be Rs. 25 crores.

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B. In respect of Small Cap Companies The minimum post-issue paid-up capital of the

Company shall be Rs. 3 crores. The minimum issue size shall be Rs. 3 crores.

The minimum market capitalization of the

Company shall be Rs. 5 crores.

The minimum income/turnover of the Companyshould be Rs. 3 crores in each of the preceding

three 12-months period.

The minimum number of public shareholders

after the issue shall be 1000. A due diligence study may be conducted by an

independent team of Chartered Accountants or

Merchant Bankers appointed by the Exchange

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II] Minimum Listing Requirements forcompanies listed on other stock

exchanges The company should have minimum

issued and paid up equity capital of Rs. 3crores.

The Company should have profit making

track record for last three years. Minimum networth of Rs. 20 crores . Minimum market capitalisation of the

listed capital should be at least two times

of the paid up capital. The company should have a dividend

paying track record for the last 3consecutive years and the minimum

dividend should be at least 10%.

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Minimum 25% of the company's issued capital shouldbe with Non-Promoters shareholders as per Clause 35of the Listing Agreement. Out of above Non Promoterholding no single shareholder should hold more than0.5% of the paid-up capital of the company individuallyor jointly with others except in case of Banks/Financial

Institutions/Foreign Institutional Investors/OverseasCorporate Bodies and Non-Resident Indians.

The company should have at least two years listingrecord with any of the Regional Stock Exchange.

The company should sign an agreement with

CDSL(Central Depository Securities Lt) & NSDL(National Securities Depository Limited) for demattrading.

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[III] Minimum Requirements for

companies delisted by this Exchange

seeking relisting of this Exchange

required to make a fresh public offer

and comply with the prevailing SEBI'sand BSE's guidelines regarding initial

public offerings.

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[IV] Permission to use the name of the

Exchange in an Issuer Company's

prospectus

The Exchange follows a procedure interms of which companies desiring to

list their securities offered throughpublic issues are required to obtain itsprior permission to use the name ofthe Exchange in their prospectus or

offer for sale documents before filingthe same with the concerned office ofthe Registrar of Companies.

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[V] Submission of Letter of

Application

As per Section 73 of the Companies

Act, 1956, a company seeking listing

of its securities on the Exchange isrequired to submit a Letter of

Application to all the Stock Exchanges

where it proposes to have itssecurities listed before filing the

prospectus with the Registrar of

Companies.

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[VI] Allotment of Securities

As per Listing Agreement, a company isrequired to complete allotment ofsecurities offered to the public within 30days of the date of closure of the

subscription list and approach theRegional Stock Exchange, i.e. StockExchange nearest to its RegisteredOffice for approval of the basis ofallotment.

In case of Book Building issue, Allotmentshall be made not later than 15 daysfrom the closure of the issue failingwhich interest at the rate of 15% shall be

paid to the investors

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[VII] Trading Permission

the issuer company should complete theformalities for trading at all the StockExchanges where the securities are tobe listed within 7 working days of

finalisation of Basis of Allotment.A company should honestly adhere to

the time limit for allotment of allsecurities and dispatch of Allotment

Letters/Share Certificates and RefundOrders and for obtaining the listingpermissions of all the Exchanges whosenames are stated in its prospectus oroffer documents.

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[VIII] Requirement of 1% Security

The companies making public/rightsissues are required to deposit 1% ofissue amount with the Regional Stock

Exchange before the issue opens. This amount is liable to be forfeited in

the event of the company notresolving the complaints of investors

regarding delay in sending refundorders/share certificates, non-paymentof commission to underwriters,brokers, etc.

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[IX] Payment of Listing Fees

All companies listed on BSE are required to pay to BSE theAnnual Listing Fees by 30th April of every financial year.

SCHEDULE OF LISTING FEES FOR THE YEAR 2010-11

more than Rs. 20 crore are required to pay an additional

fee @ Rs. 750 for every additional Rs. 1 crore

Sr.

No.

Particulars Amount (Rs.)

1. Initial Listing Fees 20,000.00

2. Annual Listing Fees

(i) Companies with listed capital upto Rs. 5

crore

10,000.00

(ii) Above Rs. 5 crore and upto Rs. 10 crore 15,000.00

(iii)Above Rs. 10 crore and upto Rs. 20 crore 30,000.00

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[X] Compliance with the Listing Agreement

Companies desirous of getting theirsecurities listed at BSE are required to

enter into an agreement with BSE

called the Listing Agreement.

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[XI] Cash Management Services

(CMS) - Collection of Listing Fees

In order to simplify the system ofpayment of listing fees, BSE has

entered into an arrangement with

HDFC Bank for collection of listingfees from 141 locations all over the

country

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THANK YOU