LISTING OF SECURITIES

A SMALL PRESENTATION ON LISTING OF SECURITIES. ITS OBJECTIVES, MERITS & DEMERITS, STEPS IN LISTING AND FINALLY DE-LISTING AND ITS TYPES.

1. LISTING OF SECURITIES George V James Roll no:- 12 5-Jun-14 Department of Commerce, Mar Ivanios College 1

2. contents Meaning Listing Regulations Objectives of Listing Advantages & Disadvantages of Listing Listing Requirements Steps in Listing Delisting 5-Jun-14 Department of Commerce, Mar Ivanios College 2

3. M eaning Listing refers to the admission of the securities of a company on a recognised stock exchange for trading . Listing of securities is undertaken with the primary objective of providing marketability, liquidity and transferability of shares. 5-Jun-14 Department of Commerce, Mar Ivanios College 3

4. Listing Regulations Comply with the Companies Act, SCRA, SEBI and rules & regulations of the exchange. To be submitted along with the application for listing:- 1. Memorandum of Associations, Articles of Association, Prospectus, Directors’ report, Annual Accounts, Agreement with Underwriters, etc. 2. Company’s activities, capital structure, distribution of shares, dividends and bonus shares issued, etc. 5-Jun-14 Department of Commerce, Mar Ivanios College 4

5. Objectives of Listing 5-Jun-14 Department of Commerce, Mar Ivanios College 5 P rovide ready marketability, liquidity & negotiability to securities; Mobilize savings for economic development; Ensure proper supervision and control of dealing; Protect interest of investors by ensuring full disclosures.

6. Advantages of Listing Provides Liquidity to securities. Regular information Easy Transferability Income tax benefit Transparency in dealing. Helps the company to gain national importance and widespread recognition. Helps in rising additional capital . 5-Jun-14 Department of Commerce, Mar Ivanios College 6

7. Disadvantages Listed companies are subjected to do various regulatory measures of the stock exchange and SEBI. Essential information has to be submitted by the listed companies to stock exchange. Annual meeting and annual general report. 5-Jun-14 Department of Commerce, Mar Ivanios College 7

8. Listing Requirements For this purpose companies have been classified into 2 groups :- 1. Large Cap Companies ( minimum issue size of Rs.10 crores and market capitalization of not less than Rs.25 crores) 2. Small Cap Companies (minimum issue size of Rs.3 crores and market capitalization of not less than Rs.5 crores) 5-Jun-14 Department of Commerce, Mar Ivanios College 8

9. Steps in Listing 5-Jun-14 Department of Commerce, Mar Ivanios College 9

10. Cont. 5-Jun-14 Department of Commerce, Mar Ivanios College 10

11. Listing fees 5-Jun-14 Department of Commerce, Mar Ivanios College 11 All companies listed on BSE are required to pay to BSE the Annual Listing Fees by 30th April of every financial year. Particulars Amount (in Rs .) Initial Listing Fees Rs.20,000 Listed Capital (in Rs . Crs ) Annual Listing Fees (in Rs .) Up to 50 Rs.1,00,000 ii. Above 50 to 100 Rs.1,66,250 iii. Above 100 to 150 Rs.1,90,000 iv. Above 150 to 200 Rs.2,28,000 v. Above 200 to 250 Rs.2,61,000 SCHEDULE OF LISTING FEES FOR THE FINANCIAL YEAR 2013-14

12. delisting Delisting is the process of termination of permission given to a listed company from trading its securities on the stock exchange. They can be in 2 ways:- 1. Compulsory Delisting 2. Voluntary Delisting 5-Jun-14 Department of Commerce, Mar Ivanios College 12

13. Compulsory Delisting It may be in the following ways:- a. Non-payment of listing fee or violation of listing agreement. b. Thin/ negligible trading or thin shareholding base. c. Non- redressel of grievances. d. Unfair trade practices at the behest of promoters or managers, such as issuing of duplicate or fake shares by the management. 5-Jun-14 Department of Commerce, Mar Ivanios College 13

14. Voluntary Delisting It may be in the following ways:- a. Unable to pay listing fee. b. Business is sick/ closed/ suspended. c. Capital base is small. d. Mergers, acquisitions, takeovers. 5-Jun-14 Department of Commerce, Mar Ivanios College 14

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