Procedure & Conditions for Listing Equities in National Stock Exchange
M Arun
Listing in NSE
NSE plays an important role in helping an Indian companies
access equity capital, by providing a liquid and well-regulated market. NSE has
about 1319 companies listed representing the length, breadth and diversity of
the Indian economy which includes from hi-tech to heavy industry, software,
refinery, public sector units, infrastructure, and financial services. Listing
on NSE raises a company’s profile among investors in India and abroad. Trade data is
distributed worldwide through various news-vending agencies. More importantly,
each and every NSE listed company is required to satisfy stringent financial,
public distribution and management requirements. High listing standards foster
investor confidence and also bring credibility into the markets.
NSE lists securities in its Capital Market (Equities) segment and its Wholesale
Debt Market segment
Equities Listing
Listing means admission of securities of an issuer to
trading privileges on a stock exchange through a formal agreement. The prime objective
of admission to dealings on the Exchange is to provide liquidity and
marketability to securities, as also to provide a mechanism for effective
management of trading.
Listing on NSE provides qualifying companies with the broadest access to investors,
the greatest market depth and liquidity, cost-effective access to capital, the
highest visibility, the fairest pricing, and investor benefits. NSE trading
terminals are now situated in various cities and towns across the length and
breath of India.
Securities listed on the Exchange are required to fulfill the eligibility
criteria for listing. Various types of securities of a company are traded under
a unique symbol and different series.
Securities
Securities Available for Trading
The Capital Market (Equities) segment of NSE facilitates
trading in the following instruments:
A. Shares
- Equity Shares
- Preference Shares
B. Debentures
- Partly Convertible Debentures
- Fully Convertible Debentures
- Non Convertible Debentures
- Warrants / Coupons / Secured Premium Notes/ other Hybrids
- Bonds
C. Units of Mutual Funds
Series
Legend for series of different securities
|
|||||||||||||||||||||||||||||||||||||||||
* EQ = Presently rolling settlement (was account period settlement before July
2, 2001)
BE = Rolling settlement before July 2, 2001. The same is presently being used
for the securities moved to Trade for Trade (Surveillance).
**=Units of mutual funds listed after December 11, 2008
Benefits of Listing on NSE
A premier marketplace
The sheer volume of trading activity ensure that the impact cost is lower on
the Exchange which in turn reduces the cost of trading to the investor. NSE’s
automated trading system ensure consistency and transparency in the trade
matching which enhances investors confidence and visibility of our market.
Visibility
The trading system provides unparallel level of trade and
post-trade information. The best 5 buy and sell orders are displayed on the
trading system and the total number of securities available for buying and
selling is also displayed. This helps the investor to know the depth of the
market. Further, corporate announcements, results, corporate actions etc are
also available on the trading system.
Largest exchange
NSE is the largest exchange in the county in terms of trading volumes. During
the year 2008-2009, NSE reported a turnover of Rs. 2,752,023 crores in the
equities segment.
Unprecedented reach
NSE provides a trading platform that extends across the
length and breadth of the country. Investors from 191 centres can avail of
trading facilities on the NSE Trading Network. The Exchange uses the latest in
communication technology to give instant access from every location.
Transaction speed
The speed at which the Exchange processes orders, results in liquidity and best
available prices. The highest number of trades in a day of 11,260,392 was
recorded on May 19, 2009.
Short settlement cycles
The Exchange has successfully completed more than 2400 settlements without any
delays.
Broadcast facility for
corporate announcements
The NSE network is used to disseminate information and company announcements
across the country. Important information regarding the company is announced to
the market through the Broadcast Mode on the NEAT System as well as
disseminated through the NSE website. Corporate developments such as financial
results, book closure, announcements of bonus, rights, takeover, mergers etc.
are disseminated across the country thus minimizing scope for price
manipulation or misuse.
Trade statistics for listed companies
Listed companies are provided with monthly trade statistics for all the
securities of the company listed on the Exchange.
Investor service centers
Six Investor service centers opened by NSE across the country cater to the needs of
investors.
NSE's diverse network ensures
that its investors avail of prompt services whenever they might need them. NSE
has a presence in all the major cities of the country. The contact addresses of
NSE offices, across India
are given below.
NSE - Corporate Office
National Stock Exchange of India
Ltd.
Exchange Plaza,
Plot no. C/1, G Block,
Bandra-Kurla Complex
Bandra (E)
Mumbai - 400 051.
Tel No: (022) 26598100 - 8114
Fax No: (022) 26598120
E-mail : ig...@nse.co.in
NSE - Branch Offices
Ahmedabad
406 Sakar II
Near Ellis Bridge
Ahmedabad - 380 006
Tel No : (079) 2658 0212/ 2658 0213
Fax No : (079) 2657 6123
E-mail : nsei...@nse.co.in
Chennai
2nd Floor, Ispahani Centre, Door No 123-124,
Nungambakkam High Road,
Nungambakkam
Chennai - 600 034
Tel No : (044) 2833 2500 / 2833 2501
Fax No : (044) 2833 2510
E-mail : nseis...@nse.co.in
Delhi
4th Floor,
Jeevan Vihar Building
Parliament Street
New Delhi-110001
Tel No: (011) 23344313 to 23344327
Fax No: (011) 2336 6658
E-mail: nsei...@nse.co.in
Hyderabad
H No.3-6-322
Mahavir House, IInd Floor
Chamber no.203 & 204
Basheerbagh
Hyderabad : 500029
Tel No: (040) 23227084 / 23227085
Fax No: (040) 23227086
E-mail: nsei...@nse.co.in
Kolkata
1st Floor, Park View Apartments
99, Rash Behari Avenue,
Kolkata – 700 029.
Tel No : (033) 24631802-1805, 24631809-1812
Fax No : (033) 24631791, 24631806
E-mail : nsei...@nse.co.in
The listing fees charged by the Exchange is much lower compared to the listing
fees charged by other exchanges.
Listing Fees
The listing fees depend on the paid up share capital of your Company:
|
Particulars |
Amount (Rs.) |
|
Initial Listing Fees |
25,000 |
|
Annual Listing Fees (based on paid up share, bond and/or debenture and/or debt capital etc.) |
|
|
Upto Rs. 1 Crore |
10,000 |
|
Above Rs. 1 Crore and upto Rs.5 Crores |
15,000 |
|
Above Rs. 5 Crore and upto Rs.10 Crores |
25,000 |
|
Above Rs. 10 Crore and upto Rs.20 Crores |
45,000 |
|
Above Rs. 20 Crore and upto Rs.30 Crores |
70,000 |
|
Above Rs. 30 Crore and upto Rs.40 Crores |
75,000 |
|
Above Rs. 40 Crore and upto Rs.50 Crores |
80,000 |
|
Above Rs. 50 Crores and upto Rs.100 Crores |
1,30,000 |
|
Above Rs. 100 Crore and upto Rs.150 Crores |
1,50,000 |
|
Above Rs. 150 Crore and upto Rs.200 Crores |
1,80,000 |
|
Above Rs. 200 Crore and upto Rs.250 Crores |
2,05,000 |
|
Above Rs. 250 Crore and upto Rs.300 Crores |
2,30,000 |
|
Above Rs. 300 Crore and upto Rs.350 Crores |
2,55,000 |
|
Above Rs. 350 Crore and upto Rs.400 Crores |
2,80,000 |
|
Above Rs. 400 Crore and upto Rs.450 Crores |
3,25,000 |
|
Above Rs. 450 Crore and upto Rs.500 Crores |
3,75,000 |
Companies which have a paid
up share, bond and/ or debenture and/or debt capital, etc. of more than Rs.500
crores will have to pay minimum fees of Rs.3,75,000 and an additional listing
fees of Rs.2,500 for every increase of Rs.5 crores or part thereof in the paid
up share, bond and/ or debenture and/or debt capital, etc.
Companies which have a paid up share, bond and/ or debenture and/or debt
capital, etc. of more than Rs.1,000 crores will have to pay minimum fees of
Rs.6,30,000 and an additional listing fees of Rs.2,750 for every increase of
Rs.5 crores or part thereof in the paid up share, bond and/ or debenture and/or
debt capital, etc.
Listing Fees - Mutual Fund
The listing fees depend on the paid up unit capital of
your Scheme:
|
Particulars |
Amount (Rs.) |
|
Initial Listing Fees |
- |
|
Listing Fees where the tenure of the Scheme is upto six months (based on the Unit capital of the Scheme in crores) |
|
|
0-100 |
16,000 |
|
100-300 |
29,000 |
|
300-500 |
47,000 |
|
500-1000 |
78,000 |
|
Maximum fees |
125,000 |
Where the tenure of the scheme is more than six months,
the listing fee as applicable for multiples of six months as given in the above
table shall be levied.
Please draw your Cheques/Demand Drafts favouring “National Stock Exchange of
India Limited” payable at Mumbai.
Eligibility Criteria for Listing
An applicant who desires listing of its securities with
NSE must fulfill the following pre-requisites:
For Initial Public
Offerings (IPOs)
For
Securities of Existing Companies
NSE staff welcome the opportunity to discuss a company’s eligibility to list
before a formal application is made. On fulfillment of the eligibility
criteria, the company is required to fill in the listing application form.
Listing Procedure
An Issuer has to take various steps prior to making an application for listing its securities on the NSE. These steps are essential to ensure the compliance of certain requirements by the Issuer before listing its securities on the NSE. The various steps to be taken include:
- Approval of Memorandum and Articles of Association
- Approval of draft prospectus
- Submission of Application
- Listing conditions and requirements
In case your company fulfils the criteria, please send the
following information for further processing :
1. A brief note on the promoters and management.
2. Company profile.
3. Copies of the Annual Report for last 3 years.
4. Copies of the Draft Offer Document.
5. Memorandum & Articles of Association.
To:
The Manager,
Listing Department,
National Stock Exchange of India Ltd.,
5th Floor, Exchange Plaza,
Bandra (E), Mumbai 400 051.
Ph. No. (022) 26598236 / 8452
E-mail: cml...@nse.co.in
Listing Agreement
A Copy of the listing agreement can be downloaded using the below said link.
I hope it will useful to all Professionals to get an idea about listing in National Stock Exhange.
With Regards,
Arunachalam