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Listing and Delisting

of Securities

Saksham Goel
What is an IPO?
• Listing of Securities is done in the form of an IPO (Initial Public Offer).
• An IPO (initial public offering) is referred to a flotation, which an
issuer or a company proposes to the public in the form of ordinary
stock or shares. It is defined as the first sale of stock by a private
company to the public. They are generally offered by new and
medium-sized firms that are looking for funds to grow and expand
their business.
Eligibility Criteria
• The paid up equity capital of the applicant shall not be less than 10 crores and the
capitalization of equity shall not be less than 25 crores.
• The Issuer shall have adhered to conditions precedent to listing from Securities Contracts
(Regulations) Act 1956, Companies Act 2013, Securities and Exchange Board of India Act
1992
• At least three years sound track record of either:
1. the company seeking listing; or
2. The promoters/promoting company.
• The company or promoters/promoting Group should not have
been debarred by the SEBI/stock exchange for any manipulation,
misconduct, litigations.
Key Parties and Responsibilities for an IPO
Intermediary Structure
Book Runners’ Legal Broker /
Counsel
BRLM Syndicate

IPO Advertisi
Legal Escrow
Grading Registrar Printers ng
Counsels Bankers
Agency Agency

Issuer
Company Arrangement
Coordination
Approvals
Listing
Fees
Delisting Of Securities
Delisting of securities means
permanent removal of securities of
a listed company from a stock
exchange. As a consequence of
delisting, the securities of that
company would no longer be
traded at that stock exchange.
Delisting can be Voluntary or
Compulsory.
Conditions and Procedure – Voluntary Delisting

A board resolution needs to be passed.


A public notice shall be published in two news
No Exit Opportunity papers
to be given An application to be given to the concerned
recognized stock exchange.
The fact of delisting to be disclosed in the first
annual report after delisting.
Obtain prior approval of the board.
Obtain prior approval of the share holders by a special resolution
passed through postal ballot.
The number of votes cast by public shareholders in favour of the
Exit opportunity
resolution should be at least two times the votes cast against.
to be given Application to the concerned recognized stock exchange for in-
principle approval.
Make a final application to the concerned recognized stock
exchange within one year of passing of special resolution.