1. Listing Application and
Procedures
A PRACTICAL STUDY
BY
CS NITIN BAGARIA
1 ST A P R I L 2 0 1 0
2. Listing Application and Procedures
Contents :
Listing Requirements
Designated Stock
Exchange
Pre – Listing Activities
Listing Activities
Flow Chart of Activities
Post – Listing Activities
3. Listing Application and Procedures
Listing Requirement :
Regulation 4(2) of SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2009 states that No issuer
shall make a public issue or rights issue of specified
securities, unless it has made an application to one or
more recognised stock exchanges for listing of specified
securities on such stock exchanges and has chosen one of
them as the designated stock exchange.
Provided that in case of an initial public offer, the issuer
shall make an application for listing of the specified
securities in at least one recognised stock exchange
having nationwide trading terminals;
4. Listing Application and Procedures
“Designated Stock Exchange” means a recognised stock
exchange in which securities of an issuer are listed or
proposed to be listed and which is chosen by the issuer as a
designated stock exchange for the purpose of a particular
issue of specified securities under these regulations,
Provided that where one or more of such stock exchanges
have nationwide trading terminals, the issuer shall choose one
of them as the designated stock exchange;
Provided further that subject to the provisions of this clause,
the issuer may choose a different recognised stock exchange
as a designated stock exchange for any subsequent issue of
specified securities under these regulations;
5. Listing Application and Procedures
Role of Issuer vis-à-vis
Designated Stock
Exchange
Filing of Offer Document
Filing of Due Diligence
Certificate of MB
Filing of Underwriting
Agreement
Finalising Basis of
Allotment
6. Listing Application and Procedures
Flow Chart of Activities
File DRHP with SEBI and SE
Obtain SEBI Observations (within 30 days)
Carry out the changes in the DRHP
Obtain No-Objection from SEBI (generally 2-5 days)
Decide Price Band
File RHP with ROC and also with SEBI for info.
Obtain ROC Approval with / without changes (generally 1-3
days)
Decide Issue Opening and Closing Date (minimum 3 days as
per ICDR)
Give Go-ahead to Printers and Mailers
Advertisements / Publicity
….cont.
7. Listing Application and Procedures
Flow Chart of Activities (continued)
Issue Opens, Closes
Obtain Provisional Certificates from bankers to the Issue (generally 2 working days)
Obtain Final Certificate from bankers to the Issue (generally 3 working days)
Run rejections with Registrar to the Issue, in presence of MB (1 day)
Prepare Basis of Allotment (1 day)
File Basis of Allotment with DSE (Designated Stock Exchange)
Obtain Approval (1-3 days)
Intimate NSDL & CDSL for credit of Shares
Simultaneously do the Refunds
Obtain Credit Certificate from NSDL & CDSL
File Listing Application
Obtain Listing and Trading Permission.
The necessary formalities for listing and commencement of trading at all stock exchanges where
the securities are to be listed are taken within seven working days of finalisation of basis of
allotment;
8. Listing Application and Procedures
Appointment of Bankers to the Issue and Refund
Bankers.
Application money Bankers to the Issue
without ASBA (along with application)
Kept in Escrow A/c
Application money Bankers to the Issue
thru ASBA (Upon Allotment)
9. Listing Application and Procedures
Appointment of Bankers to the Issue and Refund
Bankers.
Escrow Account Public Issue A/c
(Bankers to the Issue) (Bankers to the Issue)
Refund A/c
(Upon Allotment) (Refund Banker)
Application money Public Issue A/c
thru ASBA Bankers to the Issue
(Upon Allotment)
10. Listing Application and Procedures
Appointment of Bankers to the Issue and Refund
Bankers.
Refund Account Applicants
(Refund Banker)
Public Issue A/c Company A/c
Bankers to the Issue
(Upon Listing & Trading Permission)
11. Listing Application and Procedures
Post Listing Activities
Upon obtaining Listing and Trading Approvals, the
merchant banker confirms to the Bankers to the
Issue by way of copies of listing and trading
approvals that all formalities in connection with the
issue have been completed and that the banker is
free to release the money to the issuer.
12. Listing Application and Procedures
Listing Application
Listing Application Form
Listing Agreement
Annexure
Listing Fee
Security Deposit under Cl. 42 of LA
13. Listing Application and Procedures
Annexure Required :
Basis of Allotment
Advt. Copies
Shareholding patterns
List of Top Shareholders
Material Contracts and
Documents
PCS/CA Certificates
14. Listing Application and Procedures
On the Day of Submission
of Listing Application :
Be on TIME
Try to be calm
Be prepared with the
numbers
KNOW What you file
Be honest
Don’t try to outsmart
them
15. Listing Application and Procedures
Till Listing is done -
Till the commencement of listing and trading of the
specified securities offered through the Issue, all the
material development in respect of the issuer shall be
informed through public notices/ advertisements in
all those newspapers in which pre-issue
advertisement and advertisement for opening or
closure of the issue have been given.
16. Listing Application and Procedures
Failure to get Listing Approval-
The issuer shall refund the moneys raised in the
issue to the applicants, in case of failing to get listing
permission. The issuer shall pay requisite interest
amount if so required under the laws or direction or
order of the Board.
17. Hold Listing Ceremony
at the Designated Stock
Exchange NSE
Publicity /
Advertisement
Interviews
