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.
Tags : Business Environment and Law-Prospectus And Statement In Lieu Of Prospectus
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