How to list and delist a company from BSE?

The main objective of listing a company on the stock exchange or BSE Limited is to provide liquidity to securities. BSE grants listing approval to a company in accordance with provisions of Companies Act, 1956, Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Sebi guidelines, and BSE regulations. A company with an issue size of 10 crores and a market capitalization of 25 crores is eligible for listing on BSE. How to list company in BSE :-In case a company is offering securities through a public issue, prior permission is needed to use the name of BSE in the offer for sale document/prospectus. The Merchant banker hired prepares the prospectus for issue making necessary adjustments as per suggestions of Sebi. For assistance through the listing process other intermediaries acting as underwriters, lead managers, and advisors to the issue. A category I registered merchant bank is eligible for these roles based on professional competence and capital adequacy.

The offer for sale document is filed with the Registrar of companies. Also, before the filing of prospectus, a letter of application is submitted to BSE as the applicant enters into a listing agreement with the stock exchange. For listing on a stock exchange, the company has to pay an initial listing fee and annual fee. Any infringement of the agreement means suspension or compulsory delisting of securities.

Listed companies can exercise voluntary delisting rights in case of a major internal restructuring or lack of trading volume on the stock exchange. The company has to provide an exit opportunity to the shareholders in which the price is decided by reverse book building process for which the applicant shall hire a merchant banker. To carry forward the delisting application board and shareholder approval is needed in the shape of a special resolution. This resolution is submitted to the stock exchange as an intimation of delisting. It is followed by the filing of forms with the registrar and payment of the requisite fee. Delisting announcement disclosing information about the move is made through a public notice. Following which an application for delisting is made to the stock exchange.

CCV provides consultancy support for listing and also how to delist company in BSE limited. With years of experience, we have served to clients across the country which include many prestigious organizations. CCV has a professional team with attention to details providing highly professional services. Our wide areas of practice make us competent to provide end-to-end compliance management in listing and delisting of a company from BSE.

Conclusion: BSE is a pioneer of securities transaction in India, there are requirements for listing and delisting of companies.