Listing in CSE

Listing

Listing

Listing means admission of the securities of a company to trading privileges on a Stock Exchange. The principal objectives of listing are to provide ready marketability and impart liquidity and free negotiability to stocks and shares; ensure proper supervision and control of dealings therein; and protect the interests of shareholders and of the general investing public.

According to Section 73 of the Companies Act, every company intending to offer shares or debentures to the public for subscription by the issue of prospectus shall, before such issue make

an application to one or more recognized Stock Exchanges for permission for the shares and debentures intending to be offered, to be dealt within the Stock Exchanges or each such Stock Exchange. Further if the issue amount exceeds 5 crores, the company has to make arrangements

to list the securities in one more Stock Exchange, apart from regional stock Exchange.

Eligibility criteria for Listing

The issuer who decides to come out with Public Issue has to mandatorily get its securities listed on the Regional Stock Exchange. The minimum issued capital of the company should not be less than

3 crores of which a minimum of 25% should have been offered to the public.

Advantages of Listing

1. The investing public gets periodic reports of the listed companies, which help them to know the performance of the company.

2. The transaction of the listed companies are reported in daily newspapers and the investing public gets regular information of the worth of the securities.

3. Listing ensures liquidity to the public and free transferability of securities.

4. The listed companies are treated as widely held companies under the Income Tax Act and all the advantages available to a widely held company are available to the listed company under the Income Tax Act.

Delisting

Cochin Stock Exchange, Kochi, India