New Listings (IPO/FPO)
Listing means admission of securities to dealings on a recognised
stock exchange. The securities may be of any public limited company,
Central or State Government, quasi governmental and other financial
institutions/corporations, municipalities, etc.
The objectives of listing are mainly to :
- provide liquidity to securities;
- mobilize savings for economic development;
- protect interest of investors by ensuring full disclosures.
The BSE Limited has a dedicated Listing Department to grant approval
for listing of securities of companies in accordance with the provisions
of the Securities Contracts (Regulation) Act, 1956, Securities Contracts
(Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by
SEBI and Rules, Bye-laws and Regulations of BSE.
The following eligibility criteria have been prescribed for listing of companies on BSE, through Initial Public Offerings (IPOs) & Follow-on Public Offerings (FPOs):
Minimum Listing Requirements for New Companies
- The minimum post-issue paid-up capital of the applicant company (hereinafter referred to as "the Company") shall be Rs. 10 crore for IPOs & Rs.3 crore for FPOs; and
- The minimum issue size shall be Rs. 10 crore; and
- The minimum market capitalization of the Company shall be Rs.
25 crore (market capitalization shall be calculated by multiplying
the post-issue paid-up number of equity shares with the issue
Stage Wise Checklists:
- In respect of the requirement of paid-up capital and market capitalization, the issuers shall be required to include in the disclaimer clause forming a part of the offer document that in the event of the market capitalization (product of issue price and the post issue number of shares) requirement of BSE not being met, the securities of the issuer would not be listed on BSE.
- The applicant, promoters and/or group companies, shall not be in default in compliance of the listing agreement.
- The above eligibility criteria would be in addition to the conditions prescribed under SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009.
- The Issuer shall comply to the guidance/ regulations applicable to listing as bidding inter alia from
- Securities Contracts (Regulations) Act 1956
- Securities Contracts (Regulation) Rules 1957
- Companies Act 1956
- Securities and Exchange Board of India Act 1992
- And any other circular, clarifications, guidelines issued by the appropriate authority.
| Initial Listing
| Listed Capital
(In Rs. Crs)
| Upto 50
| Above 50
| Above 100
| Above 150
| Above 200
| Above 250
| Above 300
| Above 350
| Above 400
| Above 450
| Above 500
plus Rs.3,230/- for every increase of Rs. 5 crs. or part
thereof above Rs.500 crs.
| Above 1000
plus Rs.3,515/- for every increase of Rs. 5 crs. or part
thereof above Rs.1000 crs
- Includes equity shares, preference shares, Indian Depository
Receipts, Fully convertible debentures, partly convertible debentures
and any other security convertible into equity shares
- In case of debenture capital (not convertible into equity shares),
the fees will be 75% of the above fees.
- Listing Agreement
Companies desirous of getting their securities listed at BSE are
required to enter into an agreement with BSE called the Listing
Agreement, under which they are required to make certain disclosures
and perform certain acts, failing which the company may face some
disciplinary action, including suspension/delisting of securities.
As such, the Listing Agreement is of great importance and is executed
under the common seal of a company. Under the Listing Agreement,
a company undertakes, amongst other things, to provide facilities
for prompt transfer, registration, sub-division and consolidation
of securities; to give proper notice of closure of transfer books
and record dates, to forward 6 copies of unabridged Annual Reports,
Balance Sheets and Profit and Loss Accounts to BSE, to file shareholding
patterns and financial results on a quarterly basis; to intimate
promptly to the Exchange the happenings which are likely to materially
affect the financial performance of the Company and its stock
prices, to comply with the conditions of Corporate Governance,
etc. The Listing Department of BSE monitors the compliance by
the companies with the provisions of the Listing Agreement, especially
with regard to timely payment of annual listing fees, submission
of results, shareholding patterns and corporate governance reports
on a quarterly basis . Penal action is taken against the defaulting
- Other Important Information
a. Permission to Use the Name of BSE in an Issuer Company's
Companies desiring to list their securities offered through a
public issue are required to obtain prior permission of BSE to
use the name of BSE in their prospectus or offer for sale documents
before filing the same with the concerned office of the Registrar
BSE has a Listing Committee , comprising of market experts, which
decides upon the matter of granting permission to companies to
use the name of BSE in their prospectus/offer documents. This
Committee evaluates the promoters, company, project , financials,
risk factors and several other aspects before taking a decision
in this regard.
Decision with regard to some types/sizes of companies has been
delegated to the Internal Committee of BSE.
b. Submission of Letter of Application
As per Section 73 of the Companies Act, 1956, a company seeking
listing of its securities on BSE is required to submit a Letter
of Application to all the stock exchanges where it proposes to
have its securities listed before filing the prospectus with the
Registrar of Companies.
c. Allotment of Securities
As per the Listing Agreement, a company is required to complete
the allotment of securities offered to the public within 30 days
of the date of closure of the subscription list and approach the
Designated Stock Exchange for approval of the basis of allotment.
In case of Book Building issues, allotment shall be made not later
than 15 days from the closure of the issue, failing which interest
at the rate of 15% shall be paid to the investors.
d. Trading Permission
As per SEBI Guidelines, an issuer company should complete the
formalities for trading at all the stock exchanges where the securities
are to be listed within 7 working days of finalization of the
basis of allotment. A company should scrupulously adhere to the
time limit specified in SEBI (Disclosure and Investor Protection)
Guidelines 2000 for allotment of all securities and dispatch of
allotment letters/share certificates/credit in depository accounts
and refund orders and for obtaining the listing permissions of
all the exchanges whose names are stated in its prospectus or
offer document. In the event of listing permission to a company
being denied by any stock exchange where it had applied for listing
of its securities, the company cannot proceed with the allotment
of shares. However, the company may file an appeal before SEBI
under Section 22 of the Securities Contracts (Regulation) Act,
e. Requirement of 1% Security
Companies making public/rights issues are required to deposit
1% of the issue amount with the Designated Stock Exchange before
the issue opens. This amount is liable to be forfeited in the
event of the company not resolving the complaints of investors
regarding delay in sending refund orders/share certificates, non-payment
of commission to underwriters, brokers, etc