final_sec adr guidelines tracking of s & p nasdaq and listing requirements revised

8/12/2019 Final_SEC ADR Guidelines Tracking of S & P Nasdaq and Listing Requirements Revised

1/36

COURSE:- MFM Batch 2011-14

SUBJECT:- International Finance

TOPIC:- SEC, ADR Guidelines, rac!in" o# S$%, &ASDA' and (istin"

Re)uire*ents+

GROUP MEMBERS:-

Sr. No. Name Roll No.

1 Priya Hemani 74

2 Laxmi Dodeja 69

3 Sagar Parekh 93

4 Denil Pin!o 97

" S#$riyo Seng#$!a 1%3

6 &anali Panare 91

7 P#ni! &e'ada (7


2/36

U.S. Securities and Exchange Commission

SEC

Seal of the U.S. Securities and Exchange Commission

Flag of the U.S. Securities and Exchange Commission

Agency overview

Formed June 6, !"#

Jurisdiction United States federal government

$ead%uarters &ashington, '.C.

Em(loyees ",)#* +--/0

Agency executive 1ary Jo &hite

INTRODUCTION
http://en.wikipedia.org/wiki/Federal_government_of_the_United_Stateshttp://en.wikipedia.org/wiki/Washington,_D.C.http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission#cite_note-1http://en.wikipedia.org/wiki/Mary_Jo_Whitehttp://en.wikipedia.org/wiki/File:Flag_of_the_U.S._Securities_and_Exchange_Commission.pnghttp://en.wikipedia.org/wiki/File:US-SecuritiesAndExchangeCommission-Seal.svghttp://en.wikipedia.org/wiki/Washington,_D.C.http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission#cite_note-1http://en.wikipedia.org/wiki/Mary_Jo_Whitehttp://en.wikipedia.org/wiki/Federal_government_of_the_United_States


3/36

he U.S. Securities and Exchange Commission SEC is an a"enc. o# the /nited States

#ederal "oern*ent+ It holds ri*ar. resonsiilit. #or en#orcin" the #ederal securitiesla3s and

re"ulatin" the securities industr., the nations stoc! and otions e5chan"es, and other electronic

securities *ar!ets in the /nited States+

In addition to the Securities E5chan"e Act o# 1674 that created it, the SEC en#orces the

Securities Act o# 1677, the rust Indenture Act o# 1676, the Inest*ent Co*an. Act o# 1640,

the Inest*ent Adisers Act o# 1640, theSaranes895le. Act o# 2002, and other statutes+ he

SEC 3as created . Section 4 o# the Securities E5chan"e Act o# 1674 no3 codi#ied as 1:

/+S+C+; +

he en#orce*ent authorit. "ien . Con"ress allo3s the SEC to rin" ciil en#orce*ent

actions a"ainst indiiduals or co*anies alle"ed to hae co**itted accountin" #raud, roided

#alse in#or*ation, or en"a"ed in insider tradin"or other iolations o# the securities la3+ he

SEC also 3or!s 3ith cri*inal la3 en#orce*ent a"encies to rosecute indiiduals andco*anies ali!e #or o##enses 3hich include a cri*inal iolation+

o achiee its *andate, the SEC en#orces the statutor. re)uire*ent that ulic co*anies

su*it )uarterl. and annual reorts,as 3ell as other eriodic reorts+ In addition to annual

#inancial reorts, co*an. e5ecuties *ust roide a narratie account, called the

?*ana"e*ent discussion and anal.sis? MD$A, that outlines the reious .ear o# oerations

and e5lains ho3 the co*an. #ared in that ti*e eriod+ MD$A 3ill usuall. also touch on the

uco*in" .ear, outlinin" #uture "oals and aroaches to ne3 ro@ects+ In an atte*t to leel the

la.in" #ield #or all inestors, the SEC *aintains an online dataase called EDGAR the

Electronic Data Gatherin", Anal.sis, and Retrieal s.ste* online #ro* 3hich inestors can

access this and other in#or*ation #iled 3ith the a"enc.+
http://en.wikipedia.org/wiki/List_of_United_States_federal_agencieshttp://en.wikipedia.org/wiki/List_of_United_States_federal_agencieshttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Securities_Exchange_Act_of_1934http://en.wikipedia.org/wiki/Securities_Act_of_1933http://en.wikipedia.org/wiki/Trust_Indenture_Act_of_1939http://en.wikipedia.org/wiki/Investment_Company_Act_of_1940http://en.wikipedia.org/wiki/Investment_Advisers_Act_of_1940http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Acthttp://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Acthttp://en.wikipedia.org/wiki/Title_15_of_the_United_States_Codehttp://en.wikipedia.org/wiki/Title_15_of_the_United_States_Codehttp://www.law.cornell.edu/uscode/15/78d.htmlhttp://www.law.cornell.edu/uscode/15/78d.htmlhttp://en.wikipedia.org/wiki/Independent_agencies_of_the_United_States_governmenthttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Acthttp://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Acthttp://en.wikipedia.org/wiki/Credit_Rating_Agency_Reform_Acthttp://en.wikipedia.org/wiki/Accounting_scandalshttp://en.wikipedia.org/wiki/Insider_tradinghttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/List_of_law_enforcement_agencies#United_Stateshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Annual_reporthttp://en.wikipedia.org/wiki/Annual_reporthttp://en.wikipedia.org/wiki/Financial_statementshttp://en.wikipedia.org/wiki/Management_discussion_and_analysishttp://en.wikipedia.org/wiki/EDGARhttp://en.wikipedia.org/wiki/Online_and_offlinehttp://en.wikipedia.org/wiki/Online_and_offlinehttp://en.wikipedia.org/wiki/List_of_United_States_federal_agencieshttp://en.wikipedia.org/wiki/List_of_United_States_federal_agencieshttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Securities_Exchange_Act_of_1934http://en.wikipedia.org/wiki/Securities_Act_of_1933http://en.wikipedia.org/wiki/Trust_Indenture_Act_of_1939http://en.wikipedia.org/wiki/Investment_Company_Act_of_1940http://en.wikipedia.org/wiki/Investment_Advisers_Act_of_1940http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Acthttp://en.wikipedia.org/wiki/Title_15_of_the_United_States_Codehttp://en.wikipedia.org/wiki/Title_15_of_the_United_States_Codehttp://www.law.cornell.edu/uscode/15/78d.htmlhttp://en.wikipedia.org/wiki/Independent_agencies_of_the_United_States_governmenthttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Acthttp://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Acthttp://en.wikipedia.org/wiki/Credit_Rating_Agency_Reform_Acthttp://en.wikipedia.org/wiki/Accounting_scandalshttp://en.wikipedia.org/wiki/Insider_tradinghttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/List_of_law_enforcement_agencies#United_Stateshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Annual_reporthttp://en.wikipedia.org/wiki/Financial_statementshttp://en.wikipedia.org/wiki/Management_discussion_and_analysishttp://en.wikipedia.org/wiki/EDGARhttp://en.wikipedia.org/wiki/Online_and_offline


4/36

'uarterl. and i-annual reorts #ro* ulic co*anies are crucial #or inestors to *a!e sound

decisions 3hen inestin" in the caital *ar!ets+ /nli!e an!in", inest*ent in the caital

*ar!ets is not "uaranteed. the #ederal "oern*ent+ he otential #or i" "ains needs to e

3ei"hed a"ainst e)uall. li!el. losses+ Mandator. disclosure o# #inancial and other in#or*ation

aout the issuer and the securit. itsel# "ies riate indiiduals as 3ell as lar"e institutions the

sa*e asic #acts aout the ulic co*anies the. inest in, there. increasin" ulic scrutin.

3hile reducin" insider tradin" and#raud+

he SEC *a!es reorts aailale to the ulic ia the EDGAR s.ste*+ SEC also o##ers

ulications on inest*ent-related toics #or ulic education+ he sa*e online s.ste* also

ta!es tis and co*laints #ro* inestors to hel the SEC trac! do3n iolators o# the securities

la3s+ he SEC adheres to a strict olic. that it neer co**ents on the e5istence or status o# an

on"oin" inesti"ation+

HISTOR
http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporationhttp://en.wikipedia.org/wiki/Fraudhttp://en.wikipedia.org/wiki/Fraudhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporationhttp://en.wikipedia.org/wiki/Fraud


5/36

%rior to the enact*ent o# the #ederal securities la3s and the creation o# the SEC, there e5isted

so-calledlue s!. la3s+ he. 3ere enacted and en#orced at the state leel, and re"ulated the

o##erin" and sale o# securities to rotect the ulic #ro* #raud+ hou"h the seci#ic roisions

o# these la3s aried a*on" states, the. all re)uired the re"istration o# all securities o##erin"s

and sales, as 3ell as o# eer. /+S+ stoc!ro!erand ro!era"e #ir*+

o3eer, these lue s!. la3s 3ere "enerall. #ound to e ine##ectie+ For e5a*le, the

Inest*ent Ban!ers Association told its *e*ers as earl. as 161: that the. could ?i"nore? lue

s!. la3s . *a!in" securities o##erin"s across state lines throu"h the *ail+ A#ter holdin"

hearin"s on auses on interstate #rauds co**onl. !no3n as the %ecora Co**ission,

Con"ress assed the Securities Act o# 1677 1: /+S+C+;


6/36

)uestion+ Since 1664, *ost re"istration state*ents and associated *aterials #iled 3ith the SEC

can e accessed ia the SECs online s.ste*, EDGAR+

he Securities E5chan"e Act o# 1674 is also !no3n as ?the E5chan"e Act? or ?the 1674 Act?+

his act re"ulates secondar. tradin" et3een indiiduals and co*anies 3hich are o#ten

unrelated to the ori"inal issuers o# securities+ Entities under the SECs authorit. include

securities e5chan"es 3ith h.sical tradin" #loors such as the &e3 or! Stoc! E5chan"e

&SE, sel#-re"ulator. or"aniationsSR9s such as the&ational Association o# Securities

Dealers &ASD, the Municial Securities Rule*a!in" Board MSRB, online tradin"

lat#or*s such as he &ASDA' Stoc! Mar!et &ASDA' and AS, and an. other ersons

e.g., securities ro!ers en"a"ed in transactions #or the accounts o# others+
http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Self-regulatory_organizationhttp://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authorityhttp://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authorityhttp://en.wikipedia.org/wiki/Municipal_Securities_Rulemaking_Boardhttp://en.wikipedia.org/wiki/NASDAQhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Self-regulatory_organizationhttp://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authorityhttp://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authorityhttp://en.wikipedia.org/wiki/Municipal_Securities_Rulemaking_Boardhttp://en.wikipedia.org/wiki/NASDAQ


7/36

CRE!TIO" O# THE SEC

he SECs #oundation 3as laid in an era that 3as rie #or re#or*+ Be#ore the Great Crash o#

1626, there 3as little suort #or #ederal re"ulation o# the securities *ar!ets+ his 3as

articularl. true durin" the ost-orld ar I sur"e o# securities actiit.+ %roosals that the

#ederal "oern*ent re)uire #inancial disclosure and reent the #raudulent sale o# stoc! 3ere

neer seriousl. ursued+

e*ted . ro*ises o# ?ra"s to riches? trans#or*ations and eas. credit, *ost inestors "ae

little thou"ht to the s.ste*ic ris! that arose #ro* 3idesread ause o# *ar"in #inancin" and

unreliale in#or*ation aout the securities in 3hich the. 3ere inestin"+ Durin" the 1620s,

aro5i*atel. 20 *illion lar"e and s*all shareholders too! adanta"e o# ost-3ar roserit.

and set out to *a!e their #ortunes in the stoc! *ar!et+ It is esti*ated that o# the H:0 illion in

ne3 securities o##ered durin" this eriod, hal# eca*e 3orthless+

President Franklin D.

Roosevelt

Joseph Kennedy

hen the stoc! *ar!et crashed in 9ctoer 1626, ulic con#idence in the *ar!ets lu**eted+

Inestors lar"e and s*all, as 3ell as the an!s 3ho had loaned to the*, lost "reat su*s o#

*one. in the ensuin" Great Deression+ here 3as a consensus that #or the econo*. to


8/36

recoer, the ulics #aith in the caital *ar!ets needed to e restored+ Con"ress held hearin"s

to identi#. the role*s and search #or solutions+

Based on the #indin"s in these hearin"s, Con"ress durin" the ea! .ear o# the Deression

assed the Securities Act o# 1677+ his la3, to"ether 3ith the Securities E5chan"e Act o# 1674,

3hich created the SEC, 3as desi"ned to restore inestor con#idence in our caital *ar!ets .

roidin" inestors and the *ar!ets 3ith *ore reliale in#or*ation and clear rules o# honest

dealin"+ he *ain uroses o# these la3s can e reduced to t3o co**on-sense notionsJ

Co*anies ulicl. o##erin" securities #or inest*ent dollars *ust tell the ulic the truth

aout their usinesses, the securities the. are sellin", and the ris!s inoled in inestin"+

%eole 3ho sell and trade securities 8 ro!ers, dealers, and e5chan"es 8 *ust treat

inestors #airl. and honestl., uttin" inestors interests #irst+

Monitorin" the securities industr. re)uires a hi"hl. coordinated e##ort+ Con"ress estalished the

Securities and E5chan"e Co**ission in 1674 to en#orce the ne3l.-assed securities la3s, to

ro*ote stailit. in the *ar!ets and, *ost i*ortantl., to rotect inestors+ %resident Fran!lin

Delano Rooseelt aointed oseh %+ Kenned., %resident ohn F+ Kenned.s #ather, to sere as

the #irst Chair*an o# the SEC+


9/36

OR$!"I%!TIO" O# THE SEC

he SEC consists o# #ie residentiall.-aointed Co**issioners, 3ith sta""ered #ie-.ear

ter*s seeSEC 9r"aniation ChartL te5t ersionalso aailale+ 9ne o# the* is desi"nated .

the %resident as Chair*an o# the Co**ission the a"enc.s chie# e5ecutie+ B. la3, no *ore

than three o# the Co**issioners *a. elon" to the sa*e olitical art., ensurin" non-

artisanshi+ he a"enc.s #unctional resonsiilities are or"anied into #ie Diisions and 27

9##ices, each o# 3hich is head)uartered in ashin"ton, DC+ he Co**issions aro5i*atel.

7,:00 sta## are located in ashin"ton and in11 Re"ional 9##ices throu"hout the countr.+

It is the resonsiilit. o# the Co**ission toJ

interret and en#orce #ederal securities la3sL

issue ne3 rules and a*end e5istin" rulesL

oersee the insection o# securities #ir*s, ro!ers, inest*ent adisers, and ratin"s

a"enciesL

oersee riate re"ulator. or"aniations in the securities, accountin", and auditin"

#ieldsL and

coordinate /+S+ securities re"ulation 3ith #ederal, state, and #orei"n authorities+

he Co**ission conenes re"ularl. at *eetin"s that are oen to the ulic and the ne3s *edia

unless the discussion ertains to con#idential su@ects, such as 3hether to e"in an en#orce*ent

inesti"ation+

The &a's That $o(ern the Securities Industr)

Securities !ct o* +,
http://www.sec.gov/images/secorg.pdfhttp://www.sec.gov/about/orgtext.htmhttp://www.sec.gov/contact/addresses.htmhttp://www.sec.gov/images/secorg.pdfhttp://www.sec.gov/about/orgtext.htmhttp://www.sec.gov/contact/addresses.htm


10/36

9#ten re#erred to as the ?truth in securities? la3, the Securities Act o# 1677 has t3o asic

o@ectiesJ

re)uire that inestors receie #inancial and other si"ni#icant in#or*ation concernin" securities

ein" o##ered #or ulic saleL and rohiit deceit, *isreresentations, and other #raud in the sale

o# securities+

Purose o* Registration

A ri*ar. *eans o# acco*lishin" these "oals is the disclosure o# i*ortant #inancial

in#or*ation throu"h the re"istration o# securities+ his in#or*ation enales inestors, not the

"oern*ent, to *a!e in#or*ed @ud"*ents aout 3hether to urchase a co*an.s securities+

hile the SEC re)uires that the in#or*ation roided e accurate, it does not "uarantee it+

Inestors 3ho urchase securities and su##er losses hae i*ortant recoer. ri"hts i# the. can

roe that there 3as inco*lete or inaccurate disclosure o# i*ortant in#or*ation+

The Registration Process

In "eneral, securities sold in the /+S+ *ust e re"istered+ he re"istration #or*s co*anies #ile

roide essential #acts 3hile *ini*iin" the urden and e5ense o# co*l.in" 3ith the la3+ In

"eneral, re"istration #or*s call #orJ

a descrition o# the co*an.s roerties and usinessL

a descrition o# the securit. to e o##ered #or saleL

in#or*ation aout the *ana"e*ent o# the co*an.L and

#inancial state*ents certi#ied . indeendent accountants+

All co*anies, oth do*estic and #orei"n, *ust #ile their re"istration state*ents electronicall.+

hese state*ents and the acco*an.in" rosectuses eco*e ulic shortl. a#ter #ilin", and

inestors can access the* usin" EDGAR+ Re"istration state*ents are su@ect to e5a*ination #or

co*liance 3ith disclosure re)uire*ents+&ot all o##erin"s o# securities *ust e re"istered 3ith

the Co**ission+ So*e e5e*tions #ro* the re"istration re)uire*ent includeJ
http://www.sec.gov/edgar.shtmlhttp://www.sec.gov/edgar.shtml


11/36

riate o##erin"s to a li*ited nu*er o# ersons or institutionsL

o##erin"s o# li*ited sieL

intrastate o##erin"sL and

securities o# *unicial, state, and #ederal "oern*ents+

B. e5e*tin" *an. s*all o##erin"s #ro* the re"istration rocess, the SEC see!s to #oster

caital #or*ation . lo3erin" the cost o# o##erin" these t.es o# securities to the ulic+

Securities Exchange !ct o* +,/

ith this Act, Con"ress created the Securities and E5chan"e Co**ission+ he Act e*o3ersthe SEC 3ith road authorit. oer all asects o# the securities industr.+ his includes the o3er

to re"ister, re"ulate, and oersee ro!era"e #ir*s, trans#er a"ents, and clearin" a"encies as 3ell

as the nations securities sel# re"ulator. or"aniations SR9s+ he arious stoc! e5chan"es,

such as the &e3 or! Stoc! E5chan"e, and A*erican Stoc! E5chan"e are SR9s+ he Financial

Industr. Re"ulator. Authorit., 3hich oerates the &ASDA' s.ste*, is also an SR9+

he Act also identi#ies and rohiits certain t.es o# conduct in the *ar!ets and roides the

Co**ission 3ith discilinar. o3ers oer re"ulated entities and ersons associated 3ith the*+

he Act also e*o3ers the SEC to re)uire eriodic reortin" o# in#or*ation . co*anies 3ith

ulicl. traded securities+

Cororate Reorting

Co*anies 3ith *ore than H10 *illion in assets 3hose e)uit. securities are held . *ore than

a seci#ied nu*er o# holders *ust #ile annual and other eriodic reorts+ hese reorts are

aailale to the ulic throu"h the SECs EDGAR dataase+

Prox) So0icitations

he Securities E5chan"e Act also "oerns the disclosure in *aterials used to solicit

shareholders otes in annual or secial *eetin"s held #or the election o# directors and the

aroal o# other cororate action+ his in#or*ation, contained in ro5. *aterials, *ust e #iled


12/36

3ith the Co**ission in adance o# an. solicitation to ensure co*liance 3ith the disclosure

rules+ Solicitations, 3hether . *ana"e*ent or shareholder "rous, *ust disclose all i*ortant

#acts concernin" the issues on 3hich holders are as!ed to ote+

Tender O**ers

he Securities E5chan"e Act re)uires disclosure o# i*ortant in#or*ation . an.one see!in" to

ac)uire *ore than : ercent o# a co*an.s securities . direct urchase or tender o##er+ Such

an o##er o#ten is e5tended in an e##ort to "ain control o# the co*an.+ As 3ith the ro5. rules,

this allo3s shareholders to *a!e in#or*ed decisions on these critical cororate eents+

Insider Trading

he securities la3s roadl. rohiit #raudulent actiities o# an. !ind in connection 3ith the

o##er, urchase, or sale o# securities+ hese roisions are the asis #or *an. t.es o#

discilinar. actions, includin" actions a"ainst #raudulent insider tradin"+ Insider tradin" is

ille"al 3hen a erson trades a securit. 3hile in ossession o# *aterial non ulic in#or*ation in

iolation o# a dut. to 3ithhold the in#or*ation or re#rain #ro* tradin"+

Re"istration o# E5chan"es, Associations, and 9thers

he Act re)uires a ariet. o# *ar!et articiants to re"ister 3ith the Co**ission, includin"

e5chan"es, ro!ers and dealers, trans#er a"ents, and clearin" a"encies+ Re"istration #or these

or"aniations inoles #ilin" disclosure docu*ents that are udated on a re"ular asis+

he e5chan"es and the Financial Industr. Re"ulator. Authorit. FI&RA are identi#ied as sel#-

re"ulator. or"aniations SR9+ SR9s *ust create rules that allo3 #or discilinin" *e*ers #or

i*roer conduct and #or estalishin" *easures to ensure *ar!et inte"rit. and inestor

rotection+ SR9 roosed rules are ulished #or co**ent e#ore #inal SEC reie3 and

aroal+


13/36

!1R 2 !merican deositar) receits3

A*erican deositar. receits, or ADRs, are a it o# #inancial *a"ic that delier the 3orld to the

doors o# /S inestors+

First introduced . the inest*ent house o# % Mor"an in 162


14/36

(i!e nor*al stoc!s, ADRs tend to trade at leels that trac! the #inancial health o# their

underl.in" co*anies+ Still, there are i*ortant di##erences et3een an ADR and a directl.

held stoc!+

For e5a*le, there are di##erent #laors o# ADRs, each o# 3hich carries a di##erent leel o#

reortin" resonsiilit. - in other 3ords transarenc. in reortin" their #inancial health - to /S

re"ulators and inestors+

Unsonsored shares:hese o##er the lo3est leel o# entr. into the A*erican *ar!et+

/nsonsored shares trade onl. on oer-the-counter *ar!ets - not on the *a@or /S stoc!

e5chan"es - and ear no resonsiilit. to reort to /S re"ulator. a"encies+ he. are rarel.

issued toda.+

&e(e0 I:

hese shares can also onl. e traded on oer-the-counter *ar!ets, ut the. are "enerall. issued

throu"h onl. one /S a"ent - their deositar. ?sonsor+? Re"ulator. reortin" re)uire*ents are

still *ini*al+ 'uarterl. or annual reorts are not re)uired+ Een i# such reorts are issued, the.

are not re)uired to adhere to /S standards o# "enerall. acceted accountin" rinciles, or

GAA%, and the co*anies can ost their results in a #orei"n currenc.+

&e(e0 II:

Co*anies that 3ant to sell ADRs to /S inestors at this leel hae to re"ister 3ith the

Securities and E5chan"e Co**ission and #ile an annual reort that co*lies 3ith GAA%

standards+ his is the lo3est leel o# shares that can e listed on a /S stoc! e5chan"e+

&e(e0 III:

his is the "old standard o# ADR ratin"s+ It allo3s #orei"n co*anies to issue shares directl.

into the /S, rather than si*l. allo3in" the indirect urchase o# alread. created shares+ In

e5chan"e, the co*an. is re)uired to #ile annual reorts that co*l. 3ith GAA% standards,

t.icall. so*ethin" !no3n as a #or* 20-F co*ared to the re"ular 10-K #ilin" . co*anies


15/36

in the /nited States+ And it is re)uired to share an. ne3s that it distriutes 3ithin its ho*e

countr. to /S inestors as 3ell+

!1Rs5 Secia0 Ris4s9# course, een thou"h the. trade in /S dollars and can, at least on the sur#ace, closel. *i*ic

the loo! and #eel o# A*erican stoc!s, ADRs co*e 3ith their o3n set o# secial considerations

to !ee in *ind+

Currenc) ris4: I# the alue o# the /S dollar rises a"ainst the alue o# the co*an.s ho*e

currenc., a "ood deal o# the co*an.s intrinsic ro#its *i"ht e 3ied out in translation+

Conersel., i# the /S dollar 3ea!ens a"ainst the co*an.s ho*e currenc., an. ro#its it

*a!es 3ill e enhanced #or a /S o3ner+ For *ore in#or*ation on ho3 this could da*a"e or

in#late .our results, read he Dan"er o# Inestin" in International Bonds+

Po0itica0 ris4:ADR status does not insulate a co*an.s stoc! #ro* the inherent ris! o# its

ho*e countr.s olitical stailit.+ Reolution, nationaliation, currenc. collase or other

otential disasters *a. e "reater ris! #actors in other arts o# the 3orld than in the /S, and

those ris!s 3ill e clearl. translated throu"h an. ADR that ori"inates in an a##ected nation+

In*0ation ris4:Countries around the "loe *a. e *ore, or less, rone to in#lation than the /S

econo*. is at an. "ien ti*e+ hose 3ith hi"herin#lation rates *a. #ind it *ore di##icult to

ost ro#its to an /S o3ner, re"ardless o# the co*an.s underl.in" health+

In other 3ords, ADRs are @ust 3hat the. see*J a reresentation o# a #orei"n stoc!, rather than

an actual holdin" in the co*an.+ Because o# all o# the considerations listed aoe, an ADR o#

a #orei"n co*an. in the /S+ *a. trade a little ahead or a little ehind the rice the co*an.

co**ands in its o3n currenc. in its o3n ho*e ase+ But its sa#e to sa. that u.in" an ADR is

the closest an A*erican inestor can co*e to articiatin" directl. in the rest o# the 3orlds

econo*.+
http://beginnersinvest.about.com/od/bondsandfixedincome/a/aa071104.htmhttp://beginnersinvest.about.com/od/inflationrate/a/inflationprofit.htmhttp://beginnersinvest.about.com/od/bondsandfixedincome/a/aa071104.htmhttp://beginnersinvest.about.com/od/inflationrate/a/inflationprofit.htm


16/36

$uide0ines *or !1R6$1R issues 7) the Indian Comanies -1isin(estment o*

shares 7) the Indian comanies in the O(erseas mar4et through issue o*

!1Rs6$1Rs

i Diest*ent . shareholders o# their holdin"s o# Indian co*anies, in the oerseas*ar!ets 3ould e allo3ed throu"h the *echanis* o# Sonsored ADRGDR issue in

resect o#J-

a Diest*ent . shareholders o# their holdin"s o# Indian co*anies listed in IndiaL

Diest*ent . shareholders o# their holdin"s o# Indian co*anies not listed in India

ut 3hich are listed oerseas+

ii he rocess o# diest*ent 3ould e initiated . such Indian co*anies 3hose shares are

ein" o##ered #or diest*ent in the oerseas *ar!et . sonsorin" ADRGDR issues

a"ainst the loc! o# e5istin" shares o##ered . the shareholders under the roisions o#

these "uidelines+

iii Such a #acilit. 3ould e aailale ari-assu to all cate"ories o# shareholders, o# the

co*an. 3hose shares are ein" sold in the ADRGDR *ar!ets oerseas+ his 3ould

ensure that no class o# shareholders "ets a secial disensation+

i he sonsorin" co*an., 3hose shareholders roose to diest e5istin" shares in the

oerseas *ar!et throu"h issue o# ADRsGDRs 3ill "ie an otion to all its shareholders

indicatin" the nu*er o# shares to e diested and the *echanis* ho3 the rice 3ill e

deter*ined under the ADRGDR nor*s+ I# the shares o##ered #or diest*ent are *ore


17/36

than the re-seci#ied nu*er to e diested shares 3ould e acceted #or diest*ent in

roortion to e5istin" holdin"s+

he roosal #or diest*ent o# the e5istin" shares in the ADRGDR *ar!et 3ould hae

to e aroed . a secial resolution o# the co*an. 3hose shares are ein" diested+

i he roceeds o# the ADRGDR issue raised aroad shall e reatriated into India 3ithin a

eriod o# one *onth o# the closure o# the issue+

ii Such ADRGDR issues a"ainst e5istin" shares arisin" out o# the diest*ent 3ould also

co*e 3ithin the urie3 o# the e5istin" SEBI a!eoer Code i# the ADRsGDRs are

cancelled and the underl.in" shares are to e re"istered 3ith the co*an. as

shareholders+

iii Diest*ent o# e5istin" shares o# Indian co*anies in the oerseas *ar!ets #or issue o#

ADRsGDRs 3ould e rec!oned as FDI+ Such roosals 3ould re)uire FI%B aroal as

also other aroals, i# an., under the FDI olic.+

i5 Such diest*ent inductin" #orei"n e)uit. 3ould also need to con#or* to the FDI sectoralolic. and the rescried sectoral ca as alicale+ Accordin"l. the #acilit. 3ould not e

aailale 3here the co*an. 3hose shares are to e diested is en"a"ed in an actiit.

3here FDI is not er*itted+

5 Each case 3ould re)uire the aroal o# FI%B #or #orei"n e)uit. induction throu"h o##er

o# e5istin" shares under the ADRGDR route+

5i 9ther *andator. aroals such as those under the Co*anies Act, etc+ as alicale

3ould hae to e otained . the co*an. rior to the ADRGDR issue+

5ii he issue related e5enses coerin" oth #i5ed e5enses li!e under3ritin" co**issions,

lead *ana"ers char"es, le"al e5enses and rei*ursale e5enses #or ulic issue shall


18/36

e su@ect to a ceilin" o# 4N in the case o# GDRs and


19/36

Standard 8 Poor9s: ! a;or $0o7a0 Rating !genc)

Standard $ %oors is a #inancial ulishin", *edia, and in#or*ation co*an. 3ith dee roots inthose usiness se"*ents+ It alies *an. o# the sa*e rinciles that #inancial ne3saers and

*a"aines do in order to resere their @ournalistic indeendence and inte"rit.+

he credit anal.sis er#or*ed . Standard $ %oors anal.sts is in so*e 3a.s si*ilar to the

credit anal.sis that anal.sts at an!s or other #inancial institutions er#or*+ o3eer, ratin"

anal.sts so*eti*es hae access to con#idential in#or*ation that is roided . issuers, or

inest*ent an!ersarran"ers, o# structured #inance transactions as art o# the ratin" rocess+

Standard $ %oors also "ains a aluale ersectie #ro* 3or!in" on a 3ide ran"e o# credit

ratin"s throu"hout the 3orld+

Standard $ %oors er#or*s indeendent ealuation and reortin" o# credit ris!, and is not

other3ise inoled in caital *ar!et transactions+ As a result, Standard $ %oors credit ratin"s,

3hich are assi"ned ased on transarent criteria, hae lon" een utilied . caital *ar!et

articiants+

The Origin O* Standard 8 Poor5s Credit Ratings

Standard $ %oors Ratin"s Serices traces its histor. ac! to 1=>0, the .ear that enr. Oarnu*

%oor ulished the istor. o# Railroads and Canals o# the /nited States+ %oor 3as concerned

aout the lac! o# )ualit. in#or*ation aailale to inestors and e*ar!ed on a ca*ai"n to

ulicie details o# cororate oerations+ Standard $ %oors has een ulishin" credit ratin"s


20/36

since 161>, roidin" inestors and *ar!et articiants 3orld3ide 3ith indeendent anal.sis o#

credit ris!+

Rating ethodo0ogies 6 !roachesRatin" a"encies use di##erent aroaches in #or*in" and ulishin" their oinions aout credit

ris!+ So*e a"encies use anal.sts, so*e use *athe*atical *odels, and so*e use a co*ination

o# the t3o+ As ratin" a"enc. *odels di##er 3ith re"ards to their criteria, rocesses, and ratin"s

de#initions, users o# ratin"s should consider such di##erences i# the. are usin" credit ratin"s as

ench*ar!s+

!na0)st-1ri(en Credit Ratings

Credit ratin" a"encies, such as Standard $ %oors, that use the anal.st-drien aroach e*lo.

anal.sts to ealuate and e5ress an oinion on the relatie credit3orthiness o# issuers and the

relatie credit )ualit. o# det issues+ In ratin" an issuer, such as a cororation or *unicialit.,

anal.sts conduct a reie3 o# the #inancial er#or*ance, olicies, and ris! *ana"e*ent

strate"ies o# that issuer as 3ell as o# the usiness and econo*ic eniron*ent in 3hich the issuer

oerates+ In addition to ealuatin" #inancial data, credit anal.sts t.icall. 3ei"h )ualitatie

in#or*ation, such as lon"-ter* strate"ies, as the. assess the issuers ailit. and 3illin"ness to

*eet its #inancial oli"ations in a ti*el. *anner+

Ratin" a"encies that use the anal.st-drien aroach o#ten e*lo. anal.sts 3ith e5erience in

ealuatin" the relatie credit ris! o# an entit. or securit.+ In addition to their e5erience 3ith

and understandin" o# the credit *ar!ets, anal.sts are trained to thin! criticall. and to ealuate

co*le5 usiness, #inancial, and accountin" issues+ Man. anal.sts also rin" to ear

secialiations in seci#ic industr. se"*ents and transaction structures in ealuatin" credit ris!s

attriutes+

ode0-1ri(en Credit Ratings

A s*all nu*er o# ratin" a"encies use the *odel-drien aroach, #ocusin" *ore e5clusiel.

on )uantitatie data that the. incororate into a *athe*atical *odel to roduce their ratin"s,

3hich are "enerall. oint-in-ti*e assess*ents+ For e5a*le, an a"enc. usin" this aroach to


21/36

assess the credit3orthiness o# a an! or #inancial institution ealuates that entit.s asset )ualit.,

#undin", and ro#itailit. ased on #i"ures that aear in that entit.s #inancial state*ents and

re"ulator. #ilin"s+ he *athe*atical #or*ulas used to *easure credit3orthiness are o#ten

rorietar. and hi"hl. co*le5+

Standard 8 Poor5s !na0)st-1ri(en Rating Process

$0o7a0 (s. "ationa0 Ratings !gencies

So*e ratin" a"encies #ocus onl. on issuers and issues 3ithin a seci#ic countr. or re"ion, 3hile

others roide a "loal ersectie+

Gloal credit ratin" a"encies, such as Standard $ %oors, ulish ratin"s and research aout the

credit3orthiness o# issuers and the credit )ualit. o# det issues around the 3orld+ B. al.in"

standardied ratin" criteria on a "loal asis, Standard $ %oors ratin"s roide a ench*ar!

#or assessin" the relatie credit )ualit. o# issuers and instru*ents+ hese "loal scale ratin"s

*a. e use#ul to institutional inestors 3ho see! "eo"rahic diersi#ication in their det


22/36

inest*ents 3hile at the sa*e ti*e adherin" to internal inest*ent "uidelines that re)uire a

"loal ench*ar!+

&ational ratin" a"encies can roide a #ra*e o# re#erence di##erent #ro* that o# "loal a"encies

. concentratin" on a articular countr. and a s*aller unierse o# securities+ For e5a*le,

3hile "loal a"encies *a. consider national econo*ic and olitical ris! in their ratin"s,

national a"encies *a. e*lo. a countr.-seci#ic ratin" scale+ he national scale *a. e hel#ul

in co*arin" the relatie ris! o# securities issued in a sin"le countr.+ Gloal ratin" a"encies

*a. also o##er countr.-seci#ic scales in addition to their "loal scale ratin"s, as Standard $

%oors does+

Histor) o* Standard 8 Poor5s Credit Rating Ser(ices

he #ollo3in" ti*eline roides *ilestones in Standard $ %oors ratin"s histor. and "loal

e5ansionJ

+arnum Poor u70ishes a ?@@-age 7oo4 containing oerationa0 and *inancia0

detai0s on more than +?@ rai0road and cana0 comanies

161

>

First credit ratin"s on cororate onds and soerei"n det

164

1

First ratin"s on *unicial onds

16 to 24 *onths+

P0acing ratings on Creditatch+

his occurs 3hen there is a one-in-t3o li!elihood o# a ratin" chan"e in the near ter* as a result

o# an eent, a si"ni#icant and une5ected deiation #ro* anticiated er#or*ance, or a chan"e

in criteria has een adoted that necessitates a reie3 o# an entire sector or *ultile issues+

Raisin" or lo3erin" a ratin"+

Standard $ %oors discloses chan"es to ulic ratin"s, "enerall. 3ith a short e5lanation, and*a!es the* aailale at333+standardandoors+co*+ Actions *a. include credit ratin"

u"rades, do3n"rades, 3ithdra3als, and susensions, as 3ell as chan"es in credit ratin"

outloo!s and Creditatch lace*ents and re*oals+

T)e and #reDuenc) o* Sur(ei00ance

Standard $ %oors considers a nu*er o# di##erent #actors in deter*inin" the t.e o#

sureillance to er#or* on a articular ratin"+ For e5a*le, the #re)uenc. and e5tent o#

sureillance *a. deend on seci#ic ris! considerations that are releant to an indiidual, a

"rou, or a class o# rated entities+ In addition, the re"ularit. o# sureillance *a. e related to
http://www.standardandpoors.com/http://www.standardandpoors.com/http://www.standardandpoors.com/


25/36

the ti*in" and aailailit. o# #inancial and re"ulator. reortin", transaction-seci#ic

er#or*ance in#or*ation, and other ne3 in#or*ation #ro* arious sources+

For cororate and "oern*ent ratin"s, it is routine to schedule eriodic *eetin"s 3ith

*ana"e*ent+ hese #ace-to-#ace *eetin"s 3ith issuers assist anal.sts in sta.in" arised o# an.

chan"es in the issuers lans and allo3 the* to discuss ne3 deelo*ents, er#or*ance relatie

to rior e5ectations, and otential role* areas+ For structured #inance ratin"s, dedicated

sureillance anal.sts *onitor er#or*ance data and other ertinent in#or*ation+

Creditatch: The &i4e0ihood o* a Rating Change

As art o# its sureillance rocess, Standard $ %oors *a. co**unicate the otential #or a

credit ratin"s chan"e . lacin" the ratin" on Creditatch+ Ratin"s #or an issuer or issue aear

on Creditatch 3hen, ased on Standard $ %oors anal.sis, an eent or deiation #ro* an

e5ected trend has occurred, or *a. occur, that is li!el. to cause a ratin"s chan"e in the near

ter*, usuall. 3ithin 60 da.s+ Seci#icall., a Creditatch listin" si"ni#ies that Standard $

%oors eliees that a seci#ic ratin" has at least a one-in-t3o li!elihood o# ein" u"raded or

do3n"raded in the near ter*+

A ariet. o# eents and #actors, includin" *er"ers, recaitaliations, re"ulator. actions,

unanticiated oeratin" deelo*ents, or criteria chan"es *a. tri""er a Creditatch listin"+

hile the listin" *eans that the otential #or a ratin" chan"e is sustantial in the near ter*, it

does not *ean that a ratin"s chan"e is ineitale+ Rather, it indicates that *ore in#or*ation or

anal.sis is re)uired e#ore ta!in" action+ heneer ossile, the rationale e5lainin" the

Creditatch lace*ent indicates a ran"e o# ossile ratin"s outco*es that can e anticiated,

articularl. the e5tent o# the chan"e, u or do3n+

Standard $ %oors *a. also ad@ust a credit ratin" 3ithout lacin" the issuer or issue on

Creditatch e#orehand+ Standard $ %oors does not dela. a ratin"s chan"e *erel. ecause it

has not si"naled a otential chan"e on Creditatch+ I# all the necessar. in#or*ation is

aailale, Standard $ %oors chan"es the ratin" to re#lect the altered circu*stances+


26/36

Exressions O* Change: Out0oo4 !nd Creditatch

9utloo!s and Creditatch use a secial ocaular. to cone. the li!elihood o# a ratin"s

chan"eJ

?Positi(e? indicates a ratin" *a. e raised+

?"egati(e? indicates a ratin" *a. e lo3ered+

?1e(e0oing? alies to unusual situations 3here the e##ect o# #uture eents is so

uncertain that Standard $ %oors is not .et clear 3hether it *i"ht raise or lo3er a

seci#ic ratin"+

?Sta70e? is used onl. in outloo!s and si"nals that a ratin"s chan"e is unli!el., ut does

not e5ress an oinion that the #inancial er#or*ance o# the issuer or issue 3ill

necessaril. re*ain stale+

Out0oo4: &onger-Term >ie' o* a Potentia0 Rating Change

Standard $ %oors also assesses the otential #or a ratin"s chan"e . assi"nin" an outloo! to

*ost lon"-ter* credit ratin"s 9utloo!s hae a lon"er ti*e #ra*e than Creditatch listin"s and

address trends or ris!s 3ith the otential, not the certaint., o# a##ectin" credit )ualit.+ he ti*e

#ra*e #or an outloo! "enerall. is u to t3o .ears #or hi"h-"rade ratin"s and "enerall. u to one

.ear #or seculatie-"rade ratin"s+ An outloo! is not an indication that a ratin" 3ill e listed on

Creditatch+ 9utloo!s use a si*ilar ocaular. to Creditatch to si"nal 3hether a ratin" is

ositie, ne"atie, deeloin", or stale+

"!S1! Stoc4 ar4et


27/36

.e Stoc! e5chan"e

(ocation &e3 or! Cit.,&e3 or!,/nited States

Founded Feruar. 4, 16


28/36

elieed that inestors could *a!e *ore *one. . closin" the rice "as et3een u.ers and

sellers, and technolo". had eoled enou"h at that oint to *a!e it haen+

On #e7ruar)


29/36

&ASDA' is slit into three tiersL the Gloal Select Mar!et, Gloal Mar!et and Caital Mar!et+

Co*anies listed on &ASDA' reresent dierse industries #ro* retail to health care and #ro*

#inance to technolo".+ But the. all share the sa*e alue 8 to oerate e##ectiel. and to *oe

the 3orld #or3ard+

&asda) Caital Mar!et is a e)uit. *ar!et #or co*anies that hae relatiel. s*all leels o#

*ar!et caitaliation+ (istin" re)uire*ents #or such ?s*all ca? co*anies are less strin"ent

than #or other &asda) *ar!ets that list lar"er co*anies 3ith si"ni#icantl. hi"her *ar!et

caitaliation+

&ASDA' Gloal Mar!et is *ade u o# stoc!s that reresent the &asda) Gloal Mar!et+ he

&ASDA' Gloal Mar!et consists o# 1,4:0 stoc!s that *eet &asda)s strict #inancial and

li)uidit. re)uire*ents, and cororate "oernance standards+ he Gloal Mar!et is less

e5clusie than the Gloal Select Mar!et+

&ASDA' Gloal Select Mar!et is a *ar!et caitaliation-3ei"hted inde5 *ade u o# /+S+-

ased and international stoc!s that reresent the &ASDA' Gloal Select Mar!et Co*osite+

he &ASDA' Gloal Select Mar!et consists o# 1,200 stoc!s that *eet &ASDA's strict#inancial and li)uidit. re)uire*ents and cororate "oernance standards+ he Gloal Mar!et

Select is *ore e5clusie than the Gloal Mar!et+ Eer. 9ctoer, the &ASDA' (istin"

'uali#ications Deart*ent reie3s the Gloal Mar!et Co*osite to deter*ine i# an. o# its

stoc!s hae eco*e eli"ile #or listin" on the Gloal Select Mar!et+

Histor)&ASDA' 3as #ounded in 16


30/36

ul. 2, 2002, under the tic!er s.*ol&DA'+ It is re"ulated . the Financial Industr.

Re"ulator. Authorit. FI&RA, the successor to the &ASD+

hen the &ASDA' stoc! e5chan"ee"an tradin" on Feruar. =, 16


31/36

9n &oe*er =, 200


32/36

e5chan"e+ 9nl. co*anies 3ith a solid histor. and to-notch *ana"e*ent ehind the* are

considered+

he &ASDA' has three sets o# listin" re)uire*ents+ Each co*an. *ust *eet at least one o#

the three re)uire*ent sets, as 3ell as the *ain rules #or all co*anies+

&isting ReDuirements *or !00 Comanies

Each co*an. *ust hae a *ini*u* o# 1,2:0,000 ulicl.-traded shares uon listin",

e5cludin" those held . o##icers, directors or an.ene#icial o3ners o# *ore than 10N o# the

co*an.+ In addition, the re"ularid rice at ti*e o# listin" *ust e H4, and there *ust e at

least three *ar!et *a!ers #or the stoc!+ o3eer, a co*an. *a. )uali#. under a closin" rice

alternatie o# H7 or H2 i# the co*an. *eets ar.in" re)uire*ents+ Each listin" #ir* is also

re)uired to #ollo3 &asda) cororate "oernance rules such as distriution o# annual interi*

reorts, indeendent director, Audit Co**ittee, Co*ensation o# e5ecutie o##icer,

&o*ination o# directors, Code o# conduct, annual *eetin", 'uoru*, Ootin" ri"hts etc+

Co*anies *ust also 2,200 total shareholders or ::0 total shareholders 3ith 1+1 *illion

aera"e tradin" olu*es oer the ast 12 *onths+ In addition to these re)uire*ents, co*anies

*ust *eet all o# the criteria under at least one o# the #ollo3in" standards+

&isting Standard "o.+

he co*an. *ust hae a""re"ate re-ta5 earnin"s in the rior three .ears o# at least H11

*illion, in the rior t3o .ears at least H2+2 *illion, and no one .ear in the rior three .ears can

hae a net loss+

&isting Standard "o. ?

he Co*an. *ust hae a *ini*u* a""re"ate cash #lo3 o# at least H2


33/36

Co*anies can e re*oed #ro* the cash #lo3 re)uire*ent o# Standard &o+ 2 i# the

aera"e *ar!et caitaliation oer the ast 12 *onths is at least H=:0 *illion, and

reenues oer the rior #iscal .ear are at least H60 *illion+

A co*an. has three 3a.s to "et listed on the &ASDA', deendin" on the underl.in"

#unda*entals o# the co*an.+ I# a co*an. does not *eet certain criteria, such as the oeratin"

inco*e *ini*u*, it has to *a!e it u 3ith lar"er *ini*u* a*ounts in another area li!e

reenue+ his hels to i*roe the )ualit. o# co*anies listed on the e5chan"e+

It doesnt end there+ A#ter a co*an. "ets listed on the *ar!et, it *ust *aintain certain

standards to continue tradin"+ Failure to *eet the seci#ications set out . the stoc! e5chan"e

3ill result in its delistin"+ Fallin" elo3 the *ini*u* re)uired share rice, or *ar!et

caitaliation, is one o# the *a@or #actors tri""erin" a delistin"+ A"ain, the e5act details o#

delistin" deend on the e5chan"e+

&isting Time0ine

hile it "enerall. ta!es #our to si5 3ee!s to rocess a listin" alication, this ti*e #ra*e is

ariale and *a. e shortened consideral., i# the alication raises no issues and the co*an.

resonds )uic!l. to Sta## co**ents+ee! 1+ Co*an. su*its alication #or listin" and &ASDA' (istin" 'uali#ications Sta##

e"ins its reie3+

ee!s 2-7+ Sta## co*letes its reli*inar. reie3 and reares co**ent letter+

ee!s 7-4+ Co*an. addresses an. issues raised . Sta##+

ee!s :->+ Sta## co*letes their reie3 and co*an. is aroed #or listin"+

Short 1ocument Chec40ist

Since &ADA' is ale to "ather *uch o# the in#or*ation needed to eri#. co*liance #ro*

ulicl. aailale sources, the #or*s and suortin" docu*entation listin" co*an. need to

al. to &ASDA' should ta!e onl. a short ti*e to reare+
http://www.investopedia.com/terms/c/cashflow.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/d/delisting.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/c/cashflow.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/d/delisting.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asp


34/36

S.*ol Reseration For*+ his #or* is re)uired to resere or chan"e .our tradin" s.*ol+

S.*ol reseration re)uests *a. e su*itted u to t3o .ears in adance and can e

co*leted online throu"h the (istin" Center+

(istin" Alication+ his #or* can e co*leted online throu"h the (istin" Center+

(istin" A"ree*ent+ his #or* can e co*leted online throu"h the (istin" Center+

Cororate Goernance Certi#ication+ his #or* can e co*leted online throu"h the (istin"

Center+

Chec! %a.*ent For*+ Co*anies *ust su*it the alication #ee alon" 3ith their alication+

he #ull entr. #ee is due rior to the #irst da. o# tradin"+ All a.*ents to &ASDA' *a. e

*ade . 3ire or chec!+ his #or* is onl. re)uired 3hen *a!in" a.*ents . chec!+

(o"o Su*ission For*+ his #or* can e co*leted online throu"h the (istin" Center

Entr) #ees

Entr. #ees are ased uon the a""re"ate nu*er o# shares outstandin" at the ti*e o# initial

listin"+ he alication #ee, 3hich is included in the a*ounts elo3, is non-re#undale and

*ust acco*an. the alication su*ission+ he re*ainder o# the entr. #ee is due rior to the

#irst da. o# tradin"+

"!S1! $0o7a0 Se0ect ar4et and "!S1! $0o7a0 ar4et

otal Shares

9utstandin"

Entr. Fee

/ to 70 *illion H12:,000, includin" H2:,000 alication #ee

70 to :0 *illion H1:0,000, includin" H2:,000 alication #ee

:0 to 100 *illion H200,000, includin" H2:,000 alication #ee

9er 100 *illion H22:,000, includin" H2:,000 alication #ee

"!S1! Caita0 ar4et

otal Shares

9utstandin"

Entr. Fee

/ to 1: *illion H:0,000, includin" H:,000 alication #ee

9er 1: *illion H


35/36

BIB&IO$R!PH

httJ333+enturela3cor+co*listin"re)uire*entsnasda)+ht*l

httJ333+inestoedia+co*as!ans3ers121+as
http://www.venturelawcorp.com/listing_requirements_nasdaq.htmlhttp://www.investopedia.com/ask/answers/121.asphttp://www.venturelawcorp.com/listing_requirements_nasdaq.htmlhttp://www.investopedia.com/ask/answers/121.asp


36/36

httJen+3i!iedia+or"3i!i&ASDA'

httJ333+nasda)+co*aoutti*eline+d#

httJ333+inestoedia+co*articlesstoc!s0=a*erican-deositar.-receit-adr+as

httJ333+slideshare+netBiournalis*securities-and-e5chan"e-co**ission-#ilin"sT

#ro*searchU2

httJ333+slideshare+net&AFCareerAcads#inancial-*ar!ets-the-us-securit.-and-e5chan"e-

co**ission-and-the-acade*.-o#-#inanceT#ro*searchU7

httJ333+sec+"oaout3hat3edo+sht*lVintro

httJen+3i!iedia+or"3i!i/+S+SecuritiesandE5chan"eCo**ission
http://en.wikipedia.org/wiki/NASDAQhttp://www.nasdaq.com/about/timeline.pdfhttp://www.investopedia.com/articles/stocks/08/american-depositary-receipt-adr.asphttp://www.slideshare.net/BizJournalism/securities-and-exchange-commission-filings?from_search=2http://www.slideshare.net/BizJournalism/securities-and-exchange-commission-filings?from_search=2http://www.slideshare.net/NAFCareerAcads/financial-markets-the-us-security-and-exchange-commission-and-the-academy-of-finance?from_search=3http://www.slideshare.net/NAFCareerAcads/financial-markets-the-us-security-and-exchange-commission-and-the-academy-of-finance?from_search=3http://www.sec.gov/about/whatwedo.shtml#introhttp://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commissionhttp://en.wikipedia.org/wiki/NASDAQhttp://www.nasdaq.com/about/timeline.pdfhttp://www.investopedia.com/articles/stocks/08/american-depositary-receipt-adr.asphttp://www.slideshare.net/BizJournalism/securities-and-exchange-commission-filings?from_search=2http://www.slideshare.net/BizJournalism/securities-and-exchange-commission-filings?from_search=2http://www.slideshare.net/NAFCareerAcads/financial-markets-the-us-security-and-exchange-commission-and-the-academy-of-finance?from_search=3http://www.slideshare.net/NAFCareerAcads/financial-markets-the-us-security-and-exchange-commission-and-the-academy-of-finance?from_search=3http://www.sec.gov/about/whatwedo.shtml#introhttp://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission

final_sec adr guidelines tracking of s & p nasdaq and listing requirements revised

Documents