Jonlen J.R. DeSaM.COM 1

Roll No. 06

Meaning of Listing Terms, Conditions & Requirements for

listing on BSE. Conditions & Requirements for listing on

NSE. Companies Listed on BSE & NSE

(Examples) Delisting- Meaning & Types Reasons for Delisting Egs of Delisted Companies from BSE & NSE

LISTINGLISTING

Listing means admission of securities to Listing means admission of securities to dealings on a recognized stock exchange.dealings on a recognized stock exchange.

The securities may be of any public Ltd Co., The securities may be of any public Ltd Co., Pvt Co., Central or State Govtor any other Pvt Co., Central or State Govtor any other financial institution or corporation.financial institution or corporation.

the security to be listed shall be negotiable;

the issuer shall accept the Exchange Rules as binding upon itself and shall accept and comply with the terms set forth in of  KELER Rules.

the issuer shall accept depository receipts issued by KELER ,in its capacity of a depository or with reference thereto as a certificate of title to the issuer’s securities;

the issuer shall undertake the commitment that in the event securities incorporating identical rights with securities on the Trading List are issued as part of capital increase or a tap issue, it shall initiate, in line with the provisions of the Listing Regulations, the listing of the new security within that series;

an exchange prospectus prepared for the listing on the exchange shall be made available, supplied with the approval of the appropriate authority;

the company shall operate as a public limited company or at least the respective decision (general meeting resolution)about the listing must have been made;

For Large Cap Companies: Min post-issued-paid up capital shld be 3crores Min issue size shall be 10 crores Min mkt capitalization shall be 25 crores. For Small Cap Companies: Min post-issued-paid up capital shld be 3crores Min issue size shall be 5crores Min mkt capitalization shall be 5 crores Min No of public shareholders after the issue shall be

1000.

Paid up capital Conditions Precedent to Listing: The applicant desirous of listing its securities should

satisfy the exchange on the following:

a) No disciplinary action by other stock exchanges and regulatory authorities in past three yearsb) Redressal Mechanism of Investor grievance

c) Distribution of shareholdingd) Details of Litigatione) Track Record of Director(s) of the Company

REQUIREMENTS:

1. Submission of letter of application2. Allotment of securities3. Trading permission4. Listing of securities 5. Requirement of 1% security6. Payment of listing fees7. Compliance with listingagrrement

Ajel Ltd B&B Realty Ltd C G Implex Ltd DPIL Ltd Eastern Gases Ltd Flex Foods Ltd Golden Securities Ltd H S India Ltd IFCI Ltd Jai Corp Ltd

VIP Industries Ltd Bhor Industries Jain Plastics Ltd Alcargo Global Essar Shipping Indhraprastha Gas Hotel Leela Ventures 3 M India Bharat Gears Ltd BOC India

Delisting of securities means removal Delisting of securities means removal of a particular security for dealing in a of a particular security for dealing in a stock exchange. Hence the delisted stock exchange. Hence the delisted securities can no longer be traded at securities can no longer be traded at that stock exchange.that stock exchange.

2 WAYS OF DELISTING2 WAYS OF DELISTING VOLUNTARY DELISTINGVOLUNTARY DELISTING COMPULSORY DELISTINGCOMPULSORY DELISTING

VOLUNTARY DELISTINGVOLUNTARY DELISTING

• The Co. or promoters can opt to remove its securities The Co. or promoters can opt to remove its securities from the stock exchange.from the stock exchange.

• SEBI has given guidelines, manner & procedure.SEBI has given guidelines, manner & procedure.

• The final exit price to be paid to the shareholders is The final exit price to be paid to the shareholders is decided through reverse book building method.decided through reverse book building method.

• E.g.: India Gypsum Ltd, BST Ltd, WIM Co. Ltd, BPL E.g.: India Gypsum Ltd, BST Ltd, WIM Co. Ltd, BPL Engineering Ltd etc.Engineering Ltd etc.

COMPULSORY DELISTINGCOMPULSORY DELISTING

It is initiated by the stock exchange It is initiated by the stock exchange only for default by the co. with the only for default by the co. with the terms of listing agreement.terms of listing agreement.

Norms are laid down by the SEBI Norms are laid down by the SEBI guidelines.guidelines.

E.g.: Abishek Cements Ltd, Asian E.g.: Abishek Cements Ltd, Asian Tractors, Excel Software's Ltd etc.Tractors, Excel Software's Ltd etc.

REASONSREASONS Voluntary DelistingVoluntary Delisting

Unable to pay listing feesUnable to pay listing fees

Capital base is smallCapital base is small

Business is sick, suspended or closedBusiness is sick, suspended or closed

Mergers, Demergers ,AmalgamationMergers, Demergers ,Amalgamation

Compulsory DelistingCompulsory Delisting

Non payment of listing feesNon payment of listing fees

Unfair trade practicesUnfair trade practices

Violation of listing agreementViolation of listing agreement

Non redressal of grievancesNon redressal of grievances

DELISTED COMPANIES (Egs)DELISTED COMPANIES (Egs)BSEBSE A.N Global LtdA.N Global Ltd Balaji yarn LtdBalaji yarn Ltd Canara Steel LtdCanara Steel Ltd Dempo Dairy LtdDempo Dairy Ltd Eastern Overseas LtdEastern Overseas Ltd FAL Industries LtdFAL Industries Ltd German Gardens LtdGerman Gardens Ltd H.J.S Stones LtdH.J.S Stones Ltd IFB Finance LtdIFB Finance Ltd John Fowler India LtdJohn Fowler India Ltd

NSENSE Zora Pharma LtdZora Pharma Ltd Yatish Securites LtdYatish Securites Ltd Wellwin Industies Wellwin Industies

LtdLtd VSD Confin LtdVSD Confin Ltd UBE Industries LtdUBE Industries Ltd TPI India LtdTPI India Ltd SBI Home Finance SBI Home Finance

LtdLtd RMI Foods LtdRMI Foods Ltd QST LtdQST Ltd P H I L LtdP H I L Ltd