subject : listing agreement , listing and delisting securities analysis & portfolio management

1. LISTING AND
DELISTING :
LISTING
AGREEMENT
ANTONY THANKACHAN
ROSA CHERIYAN
SALU P KUMAR

2. LISTING
• Admission of securities of an issuer to buying and selling
rights (dealings) on a stock exchange by way of a formal
agreement
• The securities may be of any public limited company,
Central or State Government, quasi governmental and
other financial institutions/corporations, municipalities,
etc.
• The main aim of admission to dealings on the exchange is
to give liquidity and also marketability to securities, as
also to give a mechanism for efficient control and
supervision of trading

3. OBJECTIVES OF LISTING
Three Main Objective of listing
• Provide liquidity to shares
• Mobilize savings for economic development
• protect interest of investors by ensuring full disclosures
by regulating dealings in securities

4. BENEFITS OF LISTING
1. A premier market place :I) provides marketability
II) It ensures consistency and transparency.
2. provides and improves goodwill of the company

5. 3.Unprecedent reach:i) Stock exchange provides trading platform.
ii) Number of investors can avail of trading facilities.
4.Price detection:i) A listing facilitates companies to ascertain a price for their
shares.
5. Low cost capital:i) The primary gain of raising capital from the market.
ii) It avoids a number of intermediation expenses apparent in the
other forms of capital raising

6. DEMERITS OF LISTING
• Once the share are listed the company subject
themselves to various regulatory measures of
stock exchange SEBI.
• They have to disclose vital information to the
stock exchange ( competitors may get to know
that)
• Leads to speculation.
• The company has to send notice for annual
general meeting to a large number of
shareholders, resulting in expenditure

7. LISTING REQUIREMENTS
FOR LARGE CAP
COMPANIES
FOR SMALL CAP
COMPANIES
 Minimum post issued
paid up capital should be
3 crores
 Minimum issue size shall
be 10 crores
 Minimum market
capitalization shall be 25
crores
• Minimum post issued
paid up capital should be
3 crores
• Minimum issue size shall
be 5 crores
• Minimum market
capitalization shall be 5
crores
• Minimum no : of public
shareholders after the
issue shall be 1000.

8. LISTING PROCEDURE
 Approval of Articles of Association.
- Rule 19(2)(a)
- unclaimed dividend
- common form
- share certificate.
 Approval of draft prospectus.
- SEBI acknowledge letter
 Submission of Application

9.  Payment of listing fees and deposits of
securities money.
 Supporting documents required as follows:
•
•
•
•
•
•
Clauses of Articles of Association.
Application Letter for Listing.
Listing Application providing pre-issue details of securities.
Listing Application providing post-issue details of securities.
Checklist for supporting documents ( as applicable to the issuer)
Schedule of Distribution
 Compliance of Listing Agreement and Laws

10. DELISTING
• Means removal of a particular securities for dealing in a
stock exchange. Hence the delisted securities can no
longer be traded in that stock exchange.
• 2 ways of delisting
- compulsory delisting
- voluntary delisting

11. COMPULSORY DELISTING
• It is initiated by the stock exchange only for the default of
by the co. with terms of listing agreement.
• Norms are laid down by the SEBI guidelines , its non
compliance causes compulsory delisting
• Eg : Abhishek cements ltd , Asian tractors
• Reasons
- unfair trade practices
- non payment of listing fees
- violation of listing agreement
- non redressal of grievances.

12. VOLUNTARY DELISTING
• The co. or promoters can opt to remove its securities from
the stock exchange
• SEBI has given manner , procedure and guidelines for the
same.
• Eg : India gypsum ltd , BST ltd , BPL engineering ltd
• Reasons
- unable to pay listing fees
- capital base is small
- business is sick , suspended or closed
- mergers , demergers , amalgamation

13. COMPLAINCE WITH LISTING
AGREEMENT
Under Listing agreement company undertakes following
actions
• To provide facilities for prompt transfer, registration, subdivision and consolidation of securities
• To give proper notice of closure of transfer books and
record dates
• To furnish financial results on a quarterly basis
• Listing Department of the Exchange can take penal action
against the defaulting companies