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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
• 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 /
BRLM Syndicate

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

Company Arrangement
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
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.