Arvind chanani canute serrao


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Arvind chanani canute serrao

  1. 1. ArvindChanani (2010294)<br />Canute Serrao (2010265)<br />Comparison of Listing Criteria of NSE and BSE<br />
  2. 2. Agenda<br />What is Listing<br />Comparison for Listing criteria for IPO’s<br />Comparison for Listing criteria for companies listed on other exchanges<br />Listing fees<br />Advantages of listing on each exchange<br />Conclusion<br />
  3. 3. Listing<br />Listing on the Exchange means the creation of a funding possibility/financial alternative for  funding for the company entering the market and, parallel to that, for the investors trading on the exchange.<br />
  4. 4. Need for Listing<br />Liquidity<br />Permits Founders to Diversify<br />New corporate cash<br />Establish Value of the firm<br />Facilitates Merger Negotiation<br />Increase potential product markets<br />
  5. 5. Qualifications for listing Initial Public Offerings (IPO) <br />
  6. 6. Existing Companies listed on other stock exchanges<br />
  7. 7. Existing Companies listed on other stock exchanges<br />
  8. 8. LISTING FEES OF BSE<br />
  9. 9. LISTING FEES OF NSE<br />
  10. 10. Additional Listing Criteria for BSE<br />The minimum number of public shareholders after the issue shall be 1000 for small cap companies<br />The company shall sign an agreement with CDSL and NSDL for demat trading.<br />
  11. 11. Additional Listing Criteria for NSE<br />No disciplinary action has been taken by other stock exchanges and regulatory authorities in the past three years<br />Redressalmechanism of Investor grievanceDisclosures of shareholding, litigation, track record of Directors<br />Apart from these criteria all listing companies have to be compliant with law such as Securities Contracts (Regulations) Act 1956, Companies Act 1956, Securities and Exchange Board of India Act 1992<br />
  12. 12. Advantages of BSE over NSE<br />We see that the listing fees for NSE is more than that of BSE, although the NSE site says that it has lower listing fees<br />It varies from 1.5 to 2.5 times more than BSEBSE has larger number of small and mid-cap companies<br />It has tie up with regional exchanges for the BSE Indonextplatform<br />SME's can easily list on the Indonext platform which has less stringent norms and lower charges<br />Almost 50 per cent of BSEs’ cash market turnover comes from stocks that are outside the "A" group of stocks, NSE's top 100 stocks alone account for nearly 80 per cent of its cash segment's turnover<br />
  13. 13. Advantages of NSE over BSE<br />NSE has higher volume and more market participants<br />There is higher liquidity and lower spreads<br />There would be lower volatility in the stock price<br />They provide trade statistics of the scrip to the company<br />
  14. 14. Conclusion<br />Depending on the size of the company, NSE might be advantageous if the company is large.<br />BSE has put considerable effort in making listing easier for small and mid-cap companies. Hence it is advantageous for them to list on BSE<br />
  15. 15. Thank You<br />