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Business Environment and Law-Prospectus And Statement In Lieu Of Prospectus

Listing Of Shares On A Stock Exchange - Prospectus And Statement In Lieu Of Prospectus

   Posted On :  08.05.2018 08:06 am

The eligibility criteria for listing of securities of a company are:

Listing Of Shares On A Stock Exchange
 
 
The eligibility criteria for listing of securities of a company are:

1. Minimum issued equity capital of a company should be Rs.5 crores [Rs. 3 crores where trading is screen-based], and
2. The minimum public offer of equity capital shall be not less than 25 per cent.

Time Of Floatation:

 
The Board of Directors will decide about the time of issue of prospectus. It is advisable to consider the condition of the capital market, the investors’ mood, fiscal and monetary policies of the Government and the state of business conditions before issuing a prospectus.
 

Dating Of Prospectus:

 
 
Sec. 55 states that every prospectus must be dated and the date is deemed to be the date of publication of the prospectus. Section 56 of the Companies Act lays down that the matters and reports stated in Schedule II to the Companies Act must be included in a prospectus.
 

Abridged Form Of Prospectus:

 
 
Instead of appending full prospectus, now ‘abridged prospectus’ need only be appended to the application form. Form 2-A has been prescribed as a format of abridged prospectus.

 

 

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