Project Report on Listing Procedure in NSE and BSE (IPO Listing Procedures

A PROJECT REPORT ON
__________________________________________________
AT
_____________________________________________
HYDERABAD
A PROJECT REPORT SUBMITTED TO
OSMANIA UNIVERSITY
HYDERABAD
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE IN
BACHELORS OF BUSINESS ADMINISTRATION
SUBMITTED
BY
_________________________________
_______________________________
VILLA MARIE PG COLLEGE FOR WOMEN;
SOMAJIGUDA- 82
2014-2016
DECLARATION
I the undersigned solemnly declare that the report of the summer training work
entitled study on _____________________________________________ is based
on my work carried out during the course of my study under the supervision of
________________________________
_____________________________________&
Mrs_______________________________, Faculty, Department of Management.
Villa Marie Degree College
I assert that the statements made and conclusions drawn are an outcome of the
project work. I further declare that to the best of my knowledge and believe the
project report does not contain any part of any work which has been submitted for the
award of any other degree/ diploma/ certificate in this university or any other
university.
_______________________
(Signature of the student)
DATE:
PLACE:
ACKNOWLEDGEMENT
I am extremely grateful to Principal Dr. Y. Philomena and the Department of B.B.A
for giving me the opportunity of learning through this research project. It has been an
excellent and rewarding experience, and has immensely increased my knowledge.
I wish to express my sincere gratitude and appreciation to my project guide and
mentor, Ms.____________________, Head of Department, Department of Business
Administration, for her support, guidance and encouragement.
I would also like to extend special thanks to my family and friends who have been a
constant source of support and encouragement. Without them, this project would not
have been materialized.
_______________________
(Signature of the student)
DATE:
PLACE:
CONTENTS
PAGE NUMBERS
CHAPTER- 1
INTRODUCTION
CHAPTER-2
REVIEW OF LITURATURE
CHAPTER-3
COMPANY PROFILE
CHAPTER-4
INDUSTRY PROFILE
CHAPTER-5
: DATA ANALYSIS AND

INTERPRETATION
CHAPTER-6
FINDINGS AND SUGGESTIONS
SUMMARY
AND CONCLUSION
BIBLIOGRAPHY
Listing of security means a stock listing in stock market through process of ipo (initial
public offer) an initial public offering (IPO) or stock market launch is the first sale of
stock by a company to the public. It can be used by either small or large companies to
raise expansion capital and become publicly traded enterprises. Many companies that
undertake an IPO also request the assistance of an investment banking firm acting in
the capacity of an underwriter to help them correctly assess the value of their shares,
that is, the share price (IPO Initial Public Offerings
NEED OF THE STUDY:
To have a general study on LISTING PROCEDURE IN NSE and BSE, an insight on
risk return analysis and to identify and reduce risk by using hedging strategies and
speculation.
Objectives of the study:

To study the listing procedure in India
To study how the Investors awareness to apply for IPOs.
To know about the nse-bse listing procedure
To study about the listing of securities is how helpful for Indian economy.
To study the factors before going to apply Initial public offer.
To study the marketing methods adopted by the companies for creating

awareness about their IPO and investor gained amount through IPOs
To analyze recent listed companies in India
SCOPE OF THE STUDY:

Introduction of listing of securities in the Indian capital market is the beginning of a
new era, which is truly exciting. Listing of securities, worldwide are recognized risk
management products. These products have a long history in India, in the unorganized
sector, especially for Indian market. The availability of these products on organized
exchanges has provided the market participants with broad based risk management
tools.
This study mainly covers the area of listing of securities.
The main aim of the study is to prove how risks in investing in equity shares can be
reduced and how to make maximum return to the other investment in ipos
RESEARCH METHODOLAGY
The research design specifies the methods and procedures for conducting a particular
study. The type of research design applied here are
TITLE OF STUDY
The topic, which is selected for the study, is listing of securities in the firm so the
problem statement for this study will be listing of securities
Exploratory research
An exploratory research focuses on the discovery of ideas and is generally based on
secondary data.
DATA COLLECTION METHOD
The sources of data collection method which is being used for the studies:Primary source of data
On line trading from NSE and BSE Websites
Secondary Source Of Data:
For having the detailed study about this topic, it is necessary to have some of the
secondary information, which is collected from the
Following:-
CHAPTER-2
REVIEW OF LITRATURE
LISTING:
It is the process of taking a privately-owned organization and making the transition to
a publicly-owned entity whose shares can be traded on a stock exchange.
Listing means admission of the securities to dealings on a recognized stock exchange.
The securities may be of any public limited company, Central or State Government,
quasi governmental and other financial institutions/corporations, municipalities, etc.
The ability to have its shares traded on a stock exchange is central to an organisation's
decision to list. The fundamental role of a stock exchange is to bring together in one
market place providers of capital and organisations that require capital.. Providers of
capital earn a return on their investments through dividends and capital growth,
thereby increasing the overall wealth of the nation, while the organisations in which
they invest provide jobs and drive the economic development of Country.
The objectives of listing are mainly to :
provide liquidity to securities;
mobilize savings for economic development;
protect interest of investors by ensuring full disclosures.
These benefits include:
Access to capital for growth listing gives one the opportunity to raise
capital to fund acquisitions and/or organic growth.
Higher public and investor profile listing generally raises organisations

public profile with customers, suppliers, investors and the media. Organisation
may also be covered in analyst reports and may be included in an index.
Institutional investment public listing means organisation will find it easier

to attract institutional and professional investors.
Improved valuation being listed generates an independent valuation of

organisation by the market.
A (secondary) market for organisations shares trading of shares on gives

shareholders the opportunity to realise the value of their holdings, which in
turn can help broaden the shareholder base.
Exit strategy for early stage investors listing provides a mechanism for
founders of a company, family interests or early stage investors to exit their
investment.
Alignment of employee/management interests the process of remunerating

the employees, executives and directors with shares is simplified, making it
easier to align the interests of employees with the goals of the organisation.
Reassurance of customers and suppliers organisations listed on generally

find that the perception of their financial and business strength is improved.
READTNESS OF ORGANISATION TO GET LISTED :
What are the organisation's long-term goals and strategies?
Are there skill gaps at the senior management and board level?
How will these be resolved in a listed environment?
Are directors and senior managers prepared for greater disclosure,

accountability and transparency after listing?
Is organisations culture ready for listing?
Are there tax issues to be resolved?
Are strategies in place to retain key employees and key customers?
What initiatives (e.g. acquisitions) need to be completed before listing?
Are your operational, financial and management information systems

sufficiently robust for a listed organisation?
Have you taken account of corporate governance best practice?
Is the timing right for a listing, in terms both of the business and of market
conditions?
Do you understand what investors and the market expect and require from
you?
Answers to these questions will give a good indication of how prepared company is
for the transition to a publicly-listed company.
BSE - INDIA
The Exchange has a separate Listing Department to grant approval for listing of
securities of companies in accordance with the provisions of the Securities Contracts
(Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies
Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the
Exchange.
A company intending to have its securities listed on the Exchange has to comply with
the listing requirements prescribed by the Exchange. Some of the requirements are as
under :
A. Minimum Listing Requirements for new companies.
B. Minimum Listing Requirements for companies listed on other stock
exchanges.
C. Minimum Requirements for companies delisted by this Exchange seeking
relisting of this Exchange.
D. Permission to use the name of the Exchange in an Issuer Company's
prospectus.
E. Submission of Letter of Application.
F. Allotment of Securities.
G. Trading Permission.
H. Requirement of 1% Security.
I. Payment of Listing Fees.
J. Compliance with Listing Agreement.
K. Compliance with regard to Valuation Certificate for fixing the base price.
L. Cash Management Services (CMS) - Collection of Listing Fees.
NSE - INDIA
Benefits of Listing on NSE
A premier market place
Visibility
Largest exchange
Unprecedented reach
Modern infrastructure
Transaction speed
Short settlement cycles
Broadcast of corporate announcements
Trade statistics for listed companies
Investor service centers
Nominal listing fees
A premier marketplace
The sheer volume of trading activity ensure that the impact cost is lower on the
Exchange which in turn reduces the cost of trading to the investor. NSEs automated
trading system ensure consistency and transparency in the trade matching which
enhances investors confidence and visibility of our market.
Visibility
The trading system provides unparallel level of trade and post-trade information. The
best 5 buy and sell orders are displayed on the trading system and the total number of
securities available for buying and selling is also displayed. This helps the investor to
know the depth of the market. Further, corporate announcements, results, corporate
actions etc are also available on the trading system.
Largest exchange
NSE is the largest exchange in the county in terms of trading volumes. During the
year 2015-13, NSE reported a turnover of Rs. 1,945,285 crores in the equities
segment.
10
Unprecedented reach
NSE provides a trading platform that extends across the length and breadth of the
country. Investors from 360 centres can avail of trading facilities on the NSE Trading
Network. The Exchange uses the latest in communication technology to give instant
access from every location.
Modern infrastructure
NSE introduced for the first time in India, fully automated screen based trading. The
Exchange uses a sophisticated telecommunication network with over 9000 trading
terminals connected through VSATs (Very Small Aperture Terminals).
Transaction speed
The speed at which the Exchange processes orders, results in liquidity and best
available prices. The Exchange's trading system on an average processes 8000 orders
per minute. The highest number of trades in a day of 63,89,264 was recorded on
october 03, 2007.
Short settlement cycles
The Exchange has successfully completed more than 1900 settlements without any
delays.
Broadcast facility for corporate announcements
The NSE network is used to disseminate information and company announcements
across the country. Important information regarding the company is announced to the
market through the Broadcast Mode on the NEAT System as well as disseminated
through the NSE website. Corporate developments such as financial results, book
closure, announcements of bonus, rights, takeover, mergers etc. are disseminated
across the country thus minimizing scope for price manipulation or misuse.
Trade statistics for listed companies
Listed companies are provided with monthly trade statistics for all the securities of the
company listed on the Exchange.
Investor service centers
11
Six investor-service centers opened by NSE across the country cater to the needs of
investors.
Nominal listing fees
The listing fee charged by the Exchange is much lower compared to the listing fees
charged by other exchanges.
Eligibility Criteria for Listing on NSE
An applicant who desires listing of its securities with NSE must fulfill the following
pre-requisites:
For Initial Public Offerings (IPOs)

For Securities of Existing Companies
NSE staff welcome the opportunity to discuss a companys eligibility to list before a
formal application is made. On fulfillment of the eligibility criteria, the company is
required to fill in the listing application form.
IPOs by Companies
Qualifications for listing Initial Public Offerings (IPO) are as below:
1. Paid up Capital
The paid up equity capital of the applicant shall not be less than Rs. 10 crores
and the capitalisation of the applicants equity shall not be less than Rs. 25
crores
2. Conditions Precedent to Listing:

The Issuer shall have adhered to conditions precedent to listing as emerging
from inter-alia from Securities Contracts (Regulations) Act 1956, Companies
Act 1956, Securities and Exchange Board of India Act 1992, any rules and/or
regulations framed under foregoing statutes, as also any circular, clarifications,
guidelines issued by the appropriate authority under foregoing statutes.
12
3. Atleast three years track record of either:

a. the applicant seeking listing; or
b. the promoters/promoting company, incorporated in or outside India or
c. Partnership firm and subsequently converted into a Company (not in
existence as a Company for three years) and approaches the Exchange for
listing. The Company subsequently formed would be considered for listing
only on fulfillment of conditions stipulated by SEBI in this regard.
For this purpose, the applicant or the promoting company shall submit annual
reports of three preceding financial years to NSE and also provide a certificate
to the Exchange in respect of the following:
The company has not been referred to the Board for Industrial and Financial
Reconstruction (BIFR).
The networth of the company has not been wiped out by the accumulated
losses resulting in a negative networth
The company has not received any winding up petition admitted by a court.
The applicant desirous of listing its securities should satisfy the exchange on
the following:
a) No disciplinary action by other stock exchanges and regulatory
authorities in past three years
The applicant, promoters/promoting company(ies), group companies,
companies promoted by the promoters/promoting company(ies) have not been
in default in payment of listing fees to any stock exchange in the last three
years or has not been delisted or suspended in the past, and has not been
proceeded against by SEBI or other regulatory authorities in connection with
investor related issues or otherwise.
b) Redressal Mechanism of Investor grievance
The points of consideration are:
13

companies promoted by the promoters/promoting company(ies) track
record in redressal of investor grievances
The applicants arrangements envisaged are in place for servicing its

investor.

companies promoted by the promoters/promoting company(ies)
general approach and philosophy to the issue of investor service and
protection
Defaults in respect of payment of interest and/or principal to the

debenture/bond/fixed deposit holders by the applicant,
promoters/promoting company(ies), group companies, companies
promoted by the promoters/promoting company(ies) shall also be
considered while evaluating a companys application for listing. The
auditors certificate shall also be obtained in this regard. In case of
defaults in such payments the securities of the applicant company may
not be listed till such time it has cleared all pending obligations relating
to the payment of interest and/or principal.
c) Distribution of shareholding
The applicants/promoting company(ies) shareholding pattern on March 31 of
last three calendar years separately showing promoters and other groups
shareholding pattern should be as per the regulatory requirements.
d) Details of Litigation
companies promoted by the promoters/promoting company(ies) litigation
record, the nature of litigation, status of litigation during the preceding three
years period need to be clarified to the exchange.
e) Track Record of Director(s) of the Company
14
In respect of the track record of the directors, relevant disclosures may be

insisted upon in the offer document regarding the status of criminal cases filed
or nature of the investigation being undertaken with regard to alleged
commission of any offence by any of its directors and its effect on the business
of the company, where all or any of the directors of issuer have or has been
charge-sheeted with serious crimes like murder, rape, forgery, economic
offences etc.
Note:
In case a company approaches the Exchange for listing within six months of an IPO,
the securities may be considered as eligible for listing if they were otherwise eligible
for listing at the time of the IPO. If the company approaches the Exchange for listing
after six months of an IPO, the norms for existing listed companies may be applied
and market capitalisation be computed based on the period from the IPO to the time of
listing
Eligibility Criteria for Listing
Securities of Existing Companies
Checklist for Eligibility
Existing Companies listed on other stock exchanges

1. Paid up Capital & Market Capitalisation
a. The paid-up equity capital of the applicant shall not be less than Rs. 10
crores and the market capitalisation of the applicants equity shall not
be less than Rs. 25 crores
Provided that the requirement of Rs. 25 crores market capitalisation
under this clause 1(a) shall not be applicable to listing of securities
issued by Government Companies, Public Sector Undertakings,
Financial Institutions, Nationalised Banks, Statutory Corporations and
Banking Companies who are otherwise bound to adhere to all the
relevant statutes, guidelines, circulars, clarifications etc. that may be
issued by various regulatory authorities from time to time.
or
15
b. The paid-up equity capital of the applicant shall not be less than Rs. 25
crores (In case the market capitalisation is less than Rs. 25 crores, the
securities of the company should be traded for at least 25% of the
trading days during the last twelve months preceding the date of
submission of application by the company on at least one of the stock
exchanges where it is traded.)
or
c. The market capitalisation of the applicants equity shall not be less than
Rs. 50 crores.
or
d. The applicant Company shall have a net worth of not less than Rs.50
crores in each of the three preceeding financial years. The Company
shall submit a certificate from the statutory auditors in respect of
networth as stipulated above.
2. Conditions Precedent to Listing:
The applicant shall have adhered to conditions precedent to listing as emerging
from inter-alia, Securities Contracts (Regulations) Act 1956, Companies Act
1956, Securities and Exchange Board of India Act 1992, any rules and/or
regulations framed under foregoing statutes, as also any circular, clarifications,
guidelines issued by the appropriate authority under foregoing statutes.
3. Atleast three years track record of either:
a. the applicant seeking listing; or or
b. the promoters/promoting company, incorporated in or outside India or
For this purpose, the applicant or the promoting company shall submit annual
reports of three preceding financial years to NSE and also provide a certificate
to the Exchange in respect of the following:
o
The company has not been referred to the Board for Industrial and
Financial Reconstruction (BIFR)
16
The networth of the company has not been wiped out by the
accumulated losses resulting in a negative networth.
The company has not received any winding up petition admitted by a

court.
2.
The applicant should have been listed on any other recognised stock exchange
for atleast last three years
3.
The applicant has paid dividend in atleast 2 out of the last 3 financial years
immediately preceding the year in which listing application has been made
or
The applicant has distributable profits ( as defined under section 205 of the
Companies Act, 1956) in at least two out of the last three financial years (an
auditors certificate must be provided in this regard).
or
The networth of the applicant is atleast Rs. 50 crores
While considering the profitability / ability to distribute dividend, the non
recurring income/extraordinary income shall be excluded from the total
income. Further in case of companies where networth criteria is satisfied on
account of shares being issued at a premium for consideration other than cash,
such cases be referred to the Listing Advisory Committee (LAC) for
consideration.
applicable for listing of:
a) Equity shares and securities convertible into equity issued by
i. a banking company including a local area bank (i.e. Private Sector Banks)
set up under sub-clause (c) of Section 5 of the Banking Regulation Act, 1949
and which has received license from the Reserve Bank of India or
ii. a corresponding new bank set up under the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970, Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980, State Bank of India Act,
17
1955 and the State Bank of India (Subsidiary Banks) Act, 1959 (i.e. Public
Sector Banks) or
iii. an infrastructure company (a) whose project has been appraised by a
Public Financial Institution or Infrastructure Development Finance
Corporation (IDFC) or Infrastructure Leasing and Financial Services Limited
(IL&FS) and (b) not less than 5% of the project cost is financed by any of the
institutions referred to in clause (a) above, jointly or severally, irrespective of
whether they appraise the project or not, by way of loan or subscription to
equity or a combination of both.
b) Securities other than equity shares or securities convertible into equity
shares at a later date issued by Government Companies, Public Sector
Undertakings, Financial Institutions, Nationalised Banks, Statutory
Corporations, Banking Companies and subsidiaries of Scheduled Commercial
Banks.
4.
The applicant desirous of listing its securities should also satisfy the Exchange
on the following:
a. No Disciplinary action has been taken by other stock exchanges
and regulatory authorities in the past three years
companies promoted by the promoters/promoting company(ies) have
not been in default in payment of listing fees to any stock exchange in
the last three years or has not been delisted or suspended in the past
and has not been proceeded against by SEBI or other regulatory
authorities in connection with investor related issues or otherwise.
b. Redressal mechanism of Investor grievance
The points of consideration are:
18
The applicant, promoters/promoting company(ies), group

companies, companies promoted by the promoters/promoting
company(ies) track record in redressal of investor grievances
The applicants arrangements envisaged are in place for

servicing its investor
The applicant, promoters/promoting company(ies), group

companies, companies promoted by the promoters/promoting
company(ies) general approach and philosophy to the issue of
investor service and protection
defaults in respect of payment of interest and/or principal to the

debenture/bond/fixed deposit holders by the applicant,
promoters/promoting company(ies), group companies,
shall also be considered while evaluating a companys
application for listing. The auditors certificate shall also be
obtained in this regard. In case of defaults in such payments,
the securities of the applicant company may not be listed till
such time it has cleared all pending obligations relating to the
payment of interest and/or principal.
c. Distribution of shareholding
The applicant company/promoting company(ies) shareholding pattern
on March 31 of preceding three years separately showing promoters
and other groups shareholding pattern should be as per the regulatory
requirements.
d. Details of Litigation
litigation record, the nature of litigation, status of litigation during the
preceding three years need to be clarified to the exchange.
19
e. Track Record of Director(s) of the Company

In respect of the track record of the directors, relevant disclosures may
be insisted upon in the offer document regarding the status of criminal
cases filed or nature of the investigation being undertaken with regard
to alleged commission of any offence by any of its directors and its
effect on the business of the company, where all or any of the directors
of issuer have or has been charge-sheeted with serious crimes like
murder, rape, forgery, economic offences etc.
f. Change in Control of a Company/Utilisation of funds raised from
public
In the event of new promoters taking over listed companies which
results in change in management and/or companies utilising the funds
raised through public issue for the purposes other than those mentioned
in the offer document, such companies shall make additional
disclosures (as required by the Exchange) with regard to change in
control of a company and utilisation of funds raised from public.
Note:
a) Where an unlisted company merges with a company listed on other
stock exchanges and the merged entity seeks listing on the NSE, the
Exchange may grant listing to the merged entity only if the listed
company (prior to the merger with the unlisted company) meets all the
criteria for listing on its own account or the unlisted company meets
the requirements for listing on the Exchange, except for the market
capitalisation condition, on its own account. In case either of the above
conditions are not met then such company may be considered for
listing after a minimum period of 18 months or after the publication of
two annual reports whichever is later, provided it satisfies the criteria at
that point of time.
20
Listing Procedure
An Issuer has to take various steps prior to making an application for listing its
securities on the NSE. These steps are essential to ensure the compliance of certain
requirements by the Issuer before listing its securities on the NSE. The various steps
to be taken include:
Approval of Memorandum and Articles of Association
Approval of draft prospectus
Submission of Application
Listing conditions and requirements
In case the company fulfils the criteria, please send the following information for
further processing :
1. A brief note on the promoters and management.
2. Company profile.
3. Copies of the Annual Report for last 3 years.
4. Copies of the Draft Offer Document.
5. Memorandum & Articles of Association.
Listing Procedure
Rule 19(2) (a) of the Securities Contracts (Regulation) Rules, 1957 requires that the
Articles of Association of the Issuer wanting to list its securities must contain
provisions as given hereunder.
The Articles of Association of an Issuer shall contain the following provisions
namely:
a.
That there shall be no forfeiture of unclaimed dividends before the claim
becomes barred by law;

b. That a common form of transfer shall be used;
21
c. that fully paid shares shall be free from all lien and that in the case of partly
paid shares the Issuer's lien shall be restricted to moneys called or payable at a
fixed time in respect of such shares;
d. That registration of transfer shall not be refused on the ground of the transferor
being either alone or jointly with any other person or persons indebted to the
Issuer on any account whatsoever;
e. That any amount paid up in advance of calls on any share may carry interest
but shall not in respect thereof confer a right to dividend or to participate in
profits;
f. That option or right to call of shares shall not be given to any person except
with the sanction of the Issuer in general meetings.
g. Permission for Sub-Division/Consolidation of Share Certificate.
Note: The Relevant Authority may take exception to any provision contained in the
Articles of Association of an Issuer which may be deemed undesirable or
unreasonable in the case of a public company and may require inclusion of specific
provisions deemed to be desirable and necessary.
If the Issuer's Articles of Association is not in conformity with the provisions as stated
above, the Issuer has to make amendments to the Articles of Association. However,
the securities of an Issuer may be admitted for listing on the NSE on an undertaking
by the Issuer that the amendments necessary in the Articles of Association to bring
Articles of Association in conformity with Rule 19(2)(a) of the Securities Contract
(Regulation) Rules, 1957 shall be made in the next annual general meeting and in the
meantime the Issuer shall act strictly in accordance with prevalent provisions of
Securities Contract (Regulation) Act, 1957 and other statutes.
It is to be noted that any provision in the Articles of Association which is not in tune
with sound corporate practice has to be removed by amending the Articles of
Association.
Listing Procedure
22
The Issuer shall file the draft prospectus and application forms with NSE. The draft
prospectus should have been prepared in accordance with the statutes, notifications,
circulars, guidelines, etc. governing preparation and issue of prospectus prevailing at
the relevant time. The Issuers may particularly bear in mind the provisions of
Companies Act, Securities Contracts (Regulation) Act, the SEBI Act and the relevant
subordinate legislations thereto. NSE will peruse the draft prospectus only from the
point of view of checking whether the draft prospectus is in accordance with the
listing requirements, and therefore any approval given by NSE in respect of the draft
prospectus should not be construed as approval under any laws, rules, notifications,
circulars, guidelines etc. The Issuer should also submit the SEBI acknowledgment
card or letter indicating observations on draft prospectus or letter of offer by SEBI.
Listing Procedure :
Submission of Application :
For Issuers listing on NSE for the first time
Listing of further Issues by Issuers already listed on NSE
Listing Fees
Security deposit (for new & fresh issues and when NSE is the Regional Stock
Exchange)
Supporting documents
Submission of Application (For Issuers listing on NSE for the first time)
Issuers desiring to list existing/new securities on the NSE shall make application for
admission of their securities to dealings on the NSE in the forms prescribed in this
regard as per details given hereunder or in such other form or forms as the Relevant
Authority may from time to time prescribe in addition thereto or in modification or
substitution thereof.
Appendix 'A' - Clauses of Articles of Association.
Appendix 'B'- Application Letter for Listing.
Appendix 'C-1' - Listing Application providing pre-issue details of securities.
23
Appendix 'C-2' - Listing Application providing post-issue details of securities.

Appendix 'D'- Checklist for supporting documents ( as applicable to the issuer)
Appendix 'E' - Schedule of Distribution
Appendix 'F'- Listing Agreement
Submission of Application (Listing of further Issues by Issuers already listed on
NSE)
Issuers whose securities are already listed on the NSE shall apply for admission to
listing on the NSE of any further issue of securities made by them. The application for
admission shall be made in the forms prescribed in this regard or in such other form or
forms as the Relevant Authority may from time to time prescribe in addition thereto or
in modification or substitution thereof.
Appendix 'G'- Application Letter for Listing of further issues.
Appendix 'H' - Listing Application providing details of securities.
Appendix 'I' - Checklist for supporting documents submitted (as applicable)
Listing Fees
The listing fees depend on the paid up share capital of the Company:
Particulars
Initial Listing Fees
Amount (Rs.)
7,500
Annual Listing Fees

Companies with paid up share and/or debenture capital:
Of Rs.1 crore
4,200
Above Rs.1 crore and up to Rs.5 crores
8,400
Above Rs.5 crores and up to Rs.10 crores
14,000
28,000
42,000
Above Rs.50 crores
70,000
Companies which have a paid up capital of more than Rs. 50 crores will pay
24
additional listing fees of Rs. 1400 for every increase of Rs. 5 crores or part thereof in
the paid up share/debenture capital.
Submission of Application (Security Deposit)

(Payable only for new and fresh issues and only when NSE is the Regional Stock
Exchange)
The Relevant Authority shall not grant admission to dealings of securities of an Issuer
which is not listed or of any new (original or further) issue of securities of an Issuer
excepting Mutual Funds, which is listed on the NSE unless the Issuer deposits and
keeps deposited with the NSE (in cases where the securities are offered for
subscription, whether through the issue of a prospectus, letter of offer or otherwise,
and NSE is the Regional Stock Exchange for the Issuer) an amount calculated at 1%
of the amount of securities offered for subscription to the public and or to the holders
of existing securities of the Issuer, as the case may be for ensuring compliance by the
Issuer within the prescribed or stipulated period of all requirements and conditions
hereinafter mentioned and shall be refundable or forfeitable in the manner hereinafter
stated:
1. The Issuer shall comply with all prevailing requirements of law including all
requirements of and under any notifications, directives and guidelines issued
by the Central Government, SEBI or any statutory body or local authority or
any body or authority acting under the authority or direction of the Central
Government and all prevailing listing requirements and conditions of the NSE
and of each recognized Stock Exchange where the Issuer has applied for
permission for admission to dealings of the securities, within the prescribed or
stipulated period;
2. If the Issuer has complied with all the aforesaid requirements and conditions
including, wherever applicable, its obligation under Section 73 (or any
statutory modification or re-enactment thereof) of the Companies Act, 1956
and obligations arising therefrom, within the prescribed or stipulated period,
and on obtaining a No Objection Certificate from SEBI and submitting it to
25
NSE , NSE shall refund to the Issuer the said deposit without interest within
fifteen days from the expiry of the prescribed or stipulated period;
3. If on expiry of the prescribed or stipulated period or the extended period
referred to hereafter, the Issuer has not complied with all the aforesaid
requirements and conditions, the said deposit shall be forfeited by the NSE, at
its discretion, and thereupon the same shall vest in the NSE. Provided the
forfeiture shall not release the Issuer of its obligation to comply with the
aforesaid requirements and conditions;
4. If the Issuer is unable to complete compliance of the aforesaid requirements
and conditions within the prescribed or stipulated period, the NSE, at its
discretion and if the Issuer has shown sufficient cause, but without prejudice to
the obligations of the Issuer under the laws in force to comply with any such
requirements and conditions within the prescribed or stipulated period, may
not forfeit the said deposit but may allow such further time to the Issuer as the
NSE may deem fit; provided that
a. the Issuer has at least ten days prior to expiry of the prescribed or
stipulated period applied in writing for extension of time to the NSE
stating the reasons for non-compliance, and
b. the Issuer, having been allowed further time by the NSE, has before
expiry of the prescribed or stipulated period, published in a manner
required by the NSE, the fact of such extension having been allowed;
provided further that where the NSE has not allowed extension in
writing before expiry of the prescribed or stipulated period, the request
for extension shall be deemed to have been refused; provided also that
any such extension shall not release the Issuer of its obligations to
comply with the aforesaid requirements and conditions.
2. 50% of the above mentioned security deposit should be paid to the NSE in
cash. The balance amount can be provided by way of a bank guarantee, in the
format prescribed by or acceptable to NSE. The amount to be paid in cash is
limited to Rs.3 crores
Submission of Application (Supporting Documents)
26
Issuers applying for admission of their securities to dealings on the NSE shall submit
to the NSE the following:
Documents and Information

The documents and information prescribed in Appendix D or Appendix I (as
the case may be) to this Regulation or such other documents and information
as the Relevant Authority may from time to time prescribe, in addition thereto
or in modification or substitution thereof together with any other documents
and information which the Relevant Authority may require in any particular
case;
Distribution Schedules
Distribution Schedules duly completed in respect of each class and kind of
security in the form prescribed in Appendix E (Table I, II & III) to this
Regulation or in such other form or forms as the Relevant Authority may from
time to time prescribe in addition thereto or in modification or substitution
thereof.
27

All Issuers whose securities are listed on the NSE shall comply with the listing
conditions and requirements contained in the Listing Agreement Form appearing in
Appendix F to this Regulation or such other conditions and requirements as the
Relevant Authority may from time to time prescribe in addition thereto or in
modification or substitution thereof.
28
BSE LISTING PROCEDURE
Guidelines for Company Listing

Listing means admission of securities to dealings on a recognised stock exchange. The
securities may be of any public limited company, Central or State Government, quasi
governmental and other financial institutions/corporations, municipalities, etc.
The objectives of listing are mainly to :
provide liquidity to securities;
mobilize savings for economic development;
protect interest of investors by ensuring full disclosures.
The BSE Limited has a dedicated Listing Department to grant approval for listing of
securities of companies in accordance with the provisions of the Securities Contracts
(Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies
Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of BSE.
BSE has set various guidelines and forms that need to be adhered to and submitted by
the companies. These guidelines will help companies to expedite the fulfillment of the
various formalities and disclosure requirements that are required at various stages of
Public Issues
o
Initial Public Offering
Further Public Offering
Preferential Issues
Indian Depository Receipts
Amalgamation
Qualified Institutions Placements
29
1. Minimum Listing Requirements for New Companies

The following eligibility criteria have been prescribed for listing of companies on
BSE, through Initial Public Offerings (IPOs) & Follow-on Public Offerings (FPOs):
The minimum post-issue paid-up capital of the applicant company (hereinafter

referred to as "the Company") shall be Rs. 10 crore for IPOs & Rs.3 crore for
FPOs; and
The minimum issue size shall be Rs. 10 crore; and
The minimum market capitalization of the Company shall be Rs. 25 crore

(market capitalization shall be calculated by multiplying the post-issue paid-up
number of equity shares with the issue price).
Further :
In respect of the requirement of paid-up capital and market capitalization, the

issuers shall be required to include in the disclaimer clause forming a part of
the offer document that in the event of the market capitalization (product of
issue price and the post issue number of shares) requirement of BSE not being
met, the securities of the issuer would not be listed on BSE.
The applicant, promoters and/or group companies, shall not be in default in

compliance of the listing agreement.
The above eligibility criteria would be in addition to the conditions prescribed

under SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009.
The Issuer shall comply to the guidance/ regulations applicable to listing as

bidding inter alia from
o
Securities Contracts (Regulations) Act 1956
Securities Contracts (Regulation) Rules 1957
Securities and Exchange Board of India Act 1992
And any other circular, clarifications, guidelines issued by the

appropriate authority.
Companies Act 1956
30
2. Minimum Requirements for Companies Delisted by BSE seeking Relisting on

BSE
Companies delisted by BSE and seeking relisting at BSE are required to make a fresh
public offer and comply with the existing guidelines of SEBI and BSE regarding
initial public offerings.
3. Permission to Use the Name of BSE in an Issuer Company's Prospectus
Companies desiring to list their securities offered through a public issue are required
to obtain prior permission of BSE to use the name of BSE in their prospectus or offer
for sale documents before filing the same with the concerned office of the Registrar of
Companies.
BSE has a Listing Committee , comprising of market experts, which decides upon the
matter of granting permission to companies to use the name of BSE in their
prospectus/offer documents. This Committee evaluates the promoters, company,
project , financials, risk factors and several other aspects before taking a decision in
this regard.
Decision with regard to some types/sizes of companies has been delegated to the
Internal Committee of BSE.
4. Submission of Letter of Application
As per Section 73 of the Companies Act, 1956, a company seeking listing of its
securities on BSE is required to submit a Letter of Application to all the stock
exchanges where it proposes to have its securities listed before filing the prospectus
with the Registrar of Companies.
5. Allotment of Securities
31
As per the Listing Agreement, a company is required to complete the allotment of

securities offered to the public within 30 days of the date of closure of the
subscription list and approach the Designated Stock Exchange for approval of the
basis of allotment.
In case of Book Building issues, allotment shall be made not later than 15 days from
the closure of the issue, failing which interest at the rate of 15% shall be paid to the
investors.
6. Trading Permission
As per SEBI Guidelines, an issuer company should complete the formalities for
trading at all the stock exchanges where the securities are to be listed within 7
working days of finalization of the basis of allotment.
A company should scrupulously adhere to the time limit specified in SEBI (Disclosure
and Investor Protection) Guidelines 2000 for allotment of all securities and dispatch
of allotment letters/share certificates/credit in depository accounts and refund orders
and for obtaining the listing permissions of all the exchanges whose names are stated
in its prospectus or offer document. In the event of listing permission to a company
being denied by any stock exchange where it had applied for listing of its securities,
the company cannot proceed with the allotment of shares. However, the company may
file an appeal before SEBI under Section 22 of the Securities Contracts (Regulation)
Act, 1956.
7. Requirement of 1% Security
Companies making public/rights issues are required to deposit 1% of the issue amount
with the Designated Stock Exchange before the issue opens. This amount is liable to
be forfeited in the event of the company not resolving the complaints of investors
regarding delay in sending refund orders/share certificates, non-payment of
commission to underwriters, brokers, etc.
32
8. Payment of Listing Fees

All companies listed on BSE are required to pay to BSE the Annual Listing
Fees by 30th April of every financial year as per the Schedule of Listing Fees
prescribed from time to time.
The schedule of Listing Fees for the year 2011-12, is given here under:
33
Securities *other than Privately Placed Debt Securities and Mutual Funds
Sr.No.
1
Particulars
Annual Listing Fees
Norms
Rs. 20,000/-
(i) Upto Rs. 5 Crs.
Rs. 15,000/-
(ii) Rs.5 Crs. To Rs.10 Crs.
Rs. 25,000/-
(iii) Rs.10 Crs. To Rs.20 Crs.
Rs. 40,000/-
(iv)
Rs.20 Crs. To Rs.30 Crs.
Rs. 60,000/-
(v)
Rs.30 Crs. To Rs.100 Crs.
Rs. 70,000/- plus Rs. 2,500/- for

every increase of Rs. 5 crs or
(vi) Rs.100 Crs. to Rs.500 Crs.
part thereof above Rs. 30 crs.

Rs. 125,000/- plus Rs. 2,500/for every increase of Rs. 5 crs
or part thereof above Rs. 100
(vii)
Rs.500 Crs. to Rs.1000 Crs.
crs.
(vi)
Above Rs. 1000 Crs.
crs.
crs.
Note: In case of debenture capital (not convertible into equity shares), the
fees will be 75% of the above fees.
* includes equity shares, preference shares, indian depository receipts, fully
convertible debentures, partly convertible debentures and any other security
convertible into equity shares.
Placed Debt Securities
34
Sr.No. Particulars
1
Norms
NIL
Annual Listing Fees
(i)
Issue size up to Rs.5 Crs.
Rs. 2,500/-
(ii)
Above Rs.5 Crs. and up to Rs.10 Crs.
Rs. 3,750/-
(iii)
Above Rs.10 Crs. and up to Rs.20 Crs. Rs. 7,500/-
(iv)
Above Rs.20 Crs.
Rs. 7,500/- plus Rs. 200/- for

every increase Rs.1 Cr. or part
thereof above Rs.20 crs.
Subject to a maximum of
Rs.30,000/- per instrument.

Note: Cap on the annual listing fee of debt instruments per issuer is Rs.5,00,000/per annum.
Mutual Funds
Sr.No. Particulars
1
2
Annual Listing Fee for tenure of the scheme
Norms
NIL
Payable per
'month or
part
(i)
Issue size up to Rs.50 Crs.
thereof'
Rs.1,000/-
(ii)
Above Rs.50 Crs.and up to Rs.100 Crs.
Rs.2,000/-
(iii)
Rs.3,600/-
(iv)
Rs.5,900/-
(v)
Above Rs.500 Crs.and up to Rs. 1000 Crs.
Rs.9,800/-
(vi)
Above 1000 Crs.
Rs.15,600/-
Note:
1.
For tenure beyond One month, fees are payable for one month or
any part thereof.
35
2.
Asset Under Management (AUM) of all such listed schemes of the

Fund House exceed Rs. 10,000 crs, discount of 10% will be offered on
future annual listing fees for all listed schemes of that Fund House. For
eligibility of 10% discount on listing fees, the corpus of AUM will be taken
as on March 31st of every year.
Applicability
The above schedule of Listing Fee is uniformly applicable for all companies
irrespective of whether BSE is the designated stock exchange or not.
PAYMENT DATE
The last date for payment of Listing Fee for the year 2015-16is April 30, 2011.
Failure to pay the Listing Fee (for equity debt segment and/or Mutual Fund)
by the due date will attract interest @ 12% per annum w.e.f. May 1, 2011.
SERVICE TAX
Service Tax is payable on the listing fee at the applicable rates.
9. Compliance with the Listing Agreement

Companies desirous of getting their securities listed at BSE are required to enter into
an agreement with BSE called the Listing Agreement, under which they are required
to make certain disclosures and perform certain acts, failing which the company may
face some disciplinary action, including suspension/delisting of securities. As such,
the Listing Agreement is of great importance and is executed under the common seal
of a company. Under the Listing Agreement, a company undertakes, amongst other
things, to provide facilities for prompt transfer, registration, sub-division and
consolidation of securities; to give proper notice of closure of transfer books and
record dates, to forward 6 copies of unabridged Annual Reports, Balance Sheets and
Profit and Loss Accounts to BSE, to file shareholding patterns and financial results on
36
a quarterly basis; to intimate promptly to the Exchange the happenings which are
likely to materially affect the financial performance of the Company and its stock
prices, to comply with the conditions of Corporate Governance, etc.
The Listing Department of BSE monitors the compliance by the companies with the
provisions of the Listing Agreement, especially with regard to timely payment of
annual listing fees, submission of results, shareholding patterns and corporate
governance reports on a quarterly basis . Penal action is taken against the defaulting
companies.
10. Cash Management Services (CMS) - Collection of Listing Fees

In order to simplify the system of payment of listing fees, BSE has entered into an
arrangement with HDFC Bank for collection of listing fees from 141 locations all
over the country.Details of the HDFC Bank branches are available on our website site
www.bseindia.com as well as on the HDFC Bank website www.hdfcbank.com This
facility is being provided free of cost.
Companies intending to utilize this facility for payment of listing fee should furnish
the information (as mentioned below) in the Cash Management Cash Deposit Slip.
These slips are available at all the HDFC Bank branches.
37
Sr.No. Head
1
Client Name
Information to be Provided
BSE Limited
Client Code
BSELIST
Cheque No.
mention the cheque No & date
Date
date on which payment is being deposited
Drawer
with the bank.

state the name of the company and the
company code No.The last digits

mentioned in the Ref. No. on the Bill is the
company code No.e.g If the Ref. No in the
Bill is mentioned as : Listing/AlfBill/2004- 2005/4488, then the code No of
6
Drawee Bank
that company is 4488

state the bank on which cheque is drawn
Drawn on Location
Mention the location of the drawee bank.
Pickup Location
Not applicable
No. of Insts
Not applicable
The cheque should be drawn in favour of BSE Limited , and should be payable
locally. Companies are requested to mention in the deposit slip, the financial year(s)
for which the listing fee is being paid. Payment made through any other slips would
not be considered. The above slips will have to be filled in quadruplicate. One
acknowledged copy would be provided to the depositor by the HDFC Bank.
38
LARG CAP COMPANIES

A quick and easy way to identify large cap stocks (market capitalization over Rs.1000
crore) which have gained maximum in terms of price over the last three months. The
price momentum signifies the interest that these large cap stocks have been
generating.
MID CAP COMPANIES
Mid-cap stocks are of companies with a market capitalization between Rs.100 crore
and Rs.1000 crore. This list comprises of mid-cap stocks that have gained the
maximum in terms of price over a three month period
Small cap companies
Small cap stocks are companies with a market capitalization of <100 crore. Over a
three month period the stocks of these small-cap companies have gained the
maximum in terms of price. The price momentum in these stocks signifies the interest
that have been generating in the markets.
39
CHAPTER-3
COMPANY PROFILE
40
COMPANY PROFILE
Religare is an emerging markets financial services group with a
presence across Asia, Africa, Middle East, Europe, and the Americas. In India,
Religares largest market, the group offers a wide array of products and services
including broking, insurance, asset management, lending solutions, investment
banking and wealth management. With 10,000-plus employees across multiple
geographies, Religare serves over a million clients, including corporate and
institutions, high net worth families and individuals, and retail investors.
RELIGARE Securities Ltd. (RSL) is a wholly owned subsidiary of
RELIGARE Financial Services Ltd. (RFSL), a Company promoted by the late Dr.
Parvinder Singh, Ex-CMD of Ranbaxy Laboratories Ltd.
The primary focus of Religare Securities Ltd. is to cater to services in
Capital Market Operations to Institutional Investors. The Company is a member of the
National Stock Exchange (NSE) and OTCEI. The growing list of financial institutions
with whom RSL is empanelled as approved Broker is a reflection of the high levels of
services maintained by the Company.
As on date the Company is empanelled with UTI, IDBI, IFCI, SBI,
BOI-MF, Punjab National Bank, PNB-MF, Oriental Insurance, GIC, UTI-Offshore,
ICICI Can bank MF, Punjab & Sind Bank, Pioneer ITI, SUN F&C, IDBI Principal,
Prudential ICICI, ING Baring and J M Mutual Fund.
RELIGARE was founded with the vision of providing integrated
financial care driven by the relationship of trust. The bouquet of services offered by
RELIGARE includes Broking (Stocks and Commodities), Depository Participant
Service, Advisory on Mutual Fund Investments and Portfolio Management Services.
RELIGARE is a pioneer in the concept of partnership to reach multiple
locations in order to effectively service its large base of individual clients. Besides the
reach of
Industry : Finance - General
BSE Code : 532915
Book Closure : 11/08/2010
Group : Religare
41
NSE Code : RELIGARE

Market Cap : Rs. 6,897.44 Cr.
ISIN No : INE621H01010
Market Lot : 1
Face Value : Rs. 10.00
RELIGARE, the clients of the company greatly benefit by its strong
research capability, which encompasses fundamentals as well as technical knowledge.
GROUP :
RELIGARE in recent years has expanded its reach in health care and
financial services wherein it has multiple specialty hospital and labs which provide
health care services and multiple financial services such as secondary market equity
services, portfolio management services, depository services etc.
RELIGARE financial services group comprises of Religare Securities
Limited, RELIGARE Comdex Limited and RELIGARE Finvest Limited which
provide services in Equity, Commodity and Financial Services business & Religare
Insurance Advisory Ltd.
RELIGARE SECURITIES LIMITED
1.
Member of National Stock Exchange of India and Bombay Stock

Exchange of India.
2.
Depository Participant with National Securities Depository

Limited (NSDL) and Central Depository Services Limited (CDSL).
3.
A SEBI approved Portfolio Manager.
42
RSL provides platform to all segments of the investor to leverage the immense
opportunity offered by equity investing in India either on their own or through
managed funds in Portfolio Management.
The ARN No. of the Religare Securities Ltd. is 33764. The ARN No. is
required by to be available with the broker who deals on behalf of investors or sell the
mutual funds of the different companies present in the market.
Religare Enterprises Limited

Religare Securities Limited
Religare Finvest Limited
Equity Broking
Lending and Distribution business
Online Investment Portal
Proposed Custodial business
Portfolio Management Services

Depository Services
Religare Insurance Broking Limited

Life Insurance
Religare Commodities Limited

Commodity Broking
General Insurance
Reinsurance
43
Religare Capital Markets Limited
Religare Arts Initiative Limited
Investment Banking
Business of Art
Proposed Institutional Broking
Gallery launched - arts-i
Religare Realty Limited
Religare Venture Capital Limited
In house Real Estate Management Company
Religare Hichens Harrison**
Private Equity and Investment Manager
Religare Asset Management*
Corporate Broking
Derivatives Sales
Institutional Broking
Corporate finance
DIRECTORS OF RELIGARE SECURITIES LIMITED
Chairman
Mr. Harpal Singh
Managing Director :
Mr. Sunil Godhwani
Director
Mr. Vinay Kumar Kaul
Director
Mr. Malvinder Mohan Singh
Director
Mr. Shivinder Mohan Singh
44
MISSION
To be India's first Multinational providing complete financial services solution across
the globe
VISION
Providing integrated financial care driven by the relationship of trust and confidence.
PRODUCTS :
Products
Subscription Enrolment
fees
Deposit
R-ALLY
NIL
NIL
R-ALLY Lite (Browser Based)
NIL
Rs. 5,000
R-ALLY Pro (Application Based)
Rs. 1,800
NIL
45
Trading in Equities with Religare truly empowers you for your investment needs. We
ensure you have a superlative trading experience through
A highly process driven, diligent approach
Powerful Research & Analytics and
One of the "best-in-class" dealing rooms
Further, Religare also has one of the largest retail networks. Now, you can walk into
any of our branches and connect to our highly skilled and dedicated relationship
managers to get the best services.
The Religare Edge
Pan India footprint
Powerful research and analytics supported by a pool of highly skilled research

analysts
Ethical business practices
Offline/Online delivery models
Single window for all investment needs through your unique CRN
BROKERAGE :-
INTRADAY:DELIVERY :-
3 paisa (.3%)
30 paisa (.03%)
(NEGOTIABLE)
(NEGOTIABLE)
SERVICES :-
46
Equity
Arts
Initiative
Investment
Banking
Commodity
REL
Wealth
Advisory
Services
Mutual Fund
Insurance
Personal
Credit
Organization Structure:
47
Competititors of Religare :-
There are several financial security companies playing their roles in Indian equity
market. But Religare faces competitions from these few companies.
ICICI Direct.com
48
Share Khan (SSKI)
Kotak Securities.com
India Bulls
HDFC Securities
5paisa.com
Motital Oswal
IL&FS
Karvy
49
CHAPTER-3
INDUSTRY PROFILE
50
HISTORY OF STOCK EXCHANGE

The only stock exchanges operating in the 19th century were those of
Bombay set up in 1875 and Ahmedabad set up in 1894. These were organized as
voluntary non profit-making association of brokers to regulate and protect their
interests. Before the control on securities trading became central subject under the
constitution in 1950, it was a state subject and the Bombay securities contracts
(control) Act of 1925 used to regulate trading in securities. Under this act, the
Bombay stock exchange was recognized in 1927 and Ahmedbad in 1937.
During the war boom, a number of stock exchanges were organized in Bombay,
Ahmedbad and other centers, but they were not recognized. Soon after it became a
central subject, central legislation was proposed and a committee headed by A.D.
Gorwala went into the bill for securities regulation. On the basis of the committees
recommendations and public discussion, the securities contracts (regulation) Act
became law in 1956.
DEFINITION OF STOCK EXCHANGE
Stock exchange means anybody or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of
buying, selling or dealing in securities.
It is an association of member brokers for the purpose of self-regulation and
protecting the interests of its members.
It can operate only if it is recognized by the Government under the securities contracts
(regulation) Act, 1956. The recognition is granted under section 3 of the Act by the
central government, Ministry of Finance.
BYLAWS
Besides the above act, the securities contracts (regulation) rules were also made in
1975 to regulative certain matters of trading on the stock exchanges. There are also
bylaws of the exchanges, which are concerned with the following subjects.
Opening / closing of the stock exchanges, timing of trading, regulation of blank
transfers, regulation of Badla or carryover business, control of the settlement and
other activities of the stock exchange, fixating of margin, fixation of market prices or
51
making up prices, regulation of taravani business (jobbing), etc., regulation of brokers

trading, brokerage chargers, trading rules on the exchange, arbitrage and settlement of
disputes, settlement and clearing of the trading etc.
REGULATION OF STOCK EXCHANGES
The securities contracts (regulation) act is the basis for operations of the stock
exchanges in India. No exchange can operate legally without the government
permission or recognition. Stock exchanges are given monopoly in certain areas under
section 19 of the above Act to ensure that the control and regulation are facilitated.
Recognition can be granted to a stock exchange provided certain conditions are
satisfied and the necessary information is supplied to the government. Recognition
can also be withdrawn, if necessary. Where there are no stock exchanges, the
government licenses some of the brokers to perform the functions of a stock exchange
in its absence.
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI).
SEBI was set up as an autonomous regulatory authority by the government of India in
1988 to protect the interests of investors in securities and to promote the
development of, and to regulate the securities market and for matter connected
therewith or incidental thereto. It is empowered by two acts namely the SEBI Act,
1992 and the securities contract (regulation) Act, 1956 to perform the function of
protecting investors rights and regulating the capital markets.
BOMBAY STOCK EXCHANGE
This stock exchange, Mumbai, popularly known as BSE was
established in 1875 as The Native share and stock brokers association, as a
voluntary non-profit making association. It has an evolved over the years into its
present status as the premiere stock exchange in the country. It may be noted that the
stock exchanges the oldest one in Asia, even older than the Tokyo stock exchange,
which was founded in 1878.
52
The exchange, while providing an efficient and transparent market for

trading in securities, upholds the interests of the investors and ensures redressed of
their grievances, whether against the companies or its own member brokers. It also
strives to educate and enlighten the investors by making available necessary
informative inputs and conducting investor education programs.
A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public
representatives and an executive director is the apex body, which decides is the apex
body, which decides the policies and regulates the affairs of the exchange.The
Exchange director as the chief executive offices is responsible for the daily today
administration of the exchange.
BSE INDICES :
In order to enable the market participants, analysts etc., to track the various ups and
downs in the Indian stock market, the Exchange has introduced in 1986 an equity
stock index called BSE-SENSEX that subsequently became the barometer of the
moments of the share prices in the Indian stock market. It is a Market capitalization
weighted index of 30 component stocks representing a sample of large, wellestablished and leading companies. The base year of sensex 1978-79. The Sensex is
widely reported in both domestic and international markets through print as well as
electronic media.
Sensex is calculated using a market capitalization weighted method. As per this
methodology the level of the index reflects the total market value of all 30-component
stocks from different industries related to particular base period. The total market
value of a company is determined by multiplying the price of its stock by the nu7mber
of shared outstanding. Statisticians call index of a set of combined variables (such as
price and number of shares) a composite Index. An indexed number is used to
represent the results of this allocution in order to make the value easier to go work
with and track over a time. It is much easier to graph a chart based on Indexed values
than on based on actual valued world over majority of the well-known Indices are
constructed using Market capitalization weighted method.
In practice, the daily calculation of SENSEX is done by dividing the aggregate
market value of the 30 companies in the index by a number called the Index Divisor.
The divisor is the only link to the original base period value of the SENSEX. The
53
Devisor keeps the Index comparable over a period value of time and if the references
point for the entire Index maintenance adjustments. SENSEX is widely used to
describe the mood in the Indian stock markets. Base year average is changed as per
the formula new base year average = old base year average*(new market value / old
market value).
NATIONAL STOCK EXCHANGE
The NSE was incorporated in Nov, 1992 with an equity capital of Rs.25 crs.
The international securities consultancy (ISC) of Hong Kong has helped in setting up
NSE. ISC has prepared the detailed business plans and initialization of hardware and
software systems. The promotions for NSE were financial institutions, insurances,
companies, banks and SEBI capital market ltd, Infrastructure leasing and financial
services ltd and stock holding corporations ltd.
It has been set up to strengthen the move towards professionalization of the capital
market as well as provide nation wide securities trading facilities to investors.NSE is
not an exchange in the traditional sense where brokers own and manage the exchange.
A two tier administrative set up involving a company board and a governing aboard of
the exchange is envisaged. NSE is a national market for shares PSU bonds, debentures
and government securities since infrastructure and trading facilities are provided.
NSE-NIFTY:
The NSE on Apr22, 1996 launched a new equity Index. The NSE-50. The
new Index which replaces the existing NSE-100 Index is expected to serve as an
appropriate Index for the new segment of future and option. NIFTY mean National
Index for fifty stocks. The NSE-50 comprises fifty companies that represent 20 board
industry groups with an aggregate market capitalization of around Rs 1, 70,000 crs.
All companies included in the Index have a market capitalization in excess of Rs. 500
crs each and should have trade for 85% of trading days at an impact cost of less than
1.5%. The base period for the index is the close of price on Nov 3 1995, which makes
one year of completion of operation of NSEs capital market segment. The base value
of the index has been set at 1000.
54
NSE-MIDCAP INDEX
The NSE madcap index or the junior nifty comprises 50 stocks that represent 21st
board industry groups and will provide proper representation of the midcap segment
of the Indian capital market. All stocks in the Index should have market capitalization
of grate than Rs.200 crs and should have traded 85% of the trading days at an impact
cost of less than 2.5%.
The base period for the index is Nov 4 1996, which signifies 2 years for
completion of operations of the capital market segment of the operations. The base
value of the Index has been set at 1000.Average daily turnover of the present scenario
258212 (Laces) and number of average daily trades 2160(Laces).there are 24 stock
exchanges recognized under the securities contract (regulation Act, 1956.
HISTORY OF STOCK EXCHANGE
The only stock exchanges operating in the 19 th century were those of
Bombay set up in 1875 and Ahmedabad set up in 1894. These were organized as
voluntary non profit-making association of brokers to regulate and protect their
interests. Before the control on securities trading became central subject under the
constitution in 1950, it was a state subject and the Bombay securities contracts
(control) Act of 1925 used to regulate trading in securities. Under this act, the
Bombay stock exchange was recognized in 1927 and Ahmedbad in 1937.
During the war boom, a number of stock exchanges were organized in
Bombay, Ahmedbad and other centers, but they were not recognized. Soon after it
became a central subject, central legislation was proposed and a committee headed by
A.D. Gorwala went into the bill for securities regulation. On the basis of the
committees recommendations and public discussion, the securities contracts
(regulation) Act became law in 1956.
DEFINITION OF STOCK EXCHANGE
Stock exchange means any body or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of
buying, selling or dealing in securities.
It is an association of member brokers for the purpose of self-regulation and
protecting the interests of its members.
55
It can operate only if it is recognized by the Government under the securities

contracts (regulation) Act, 1956. The recognition is granted under section 3 of the Act
by the central government, Ministry of Finance.
BYLAWS
Besides the above act, the securities contracts (regulation) rules were also
made in 1975 to regulative certain matters of trading on the stock exchanges. There
are also bylaws of the exchanges, which are concerned with the following subjects.
Opening / closing of the stock exchanges, timing of trading, regulation of
blank transfers, regulation of Badla or carryover business, control of the settlement
and other activities of the stock exchange, fixating of margin, fixation of market
prices or making up prices, regulation of taravani business (jobbing), etc., regulation
of brokers trading, brokerage chargers, trading rules on the exchange, arbitrage and
settlement of disputes, settlement and clearing of the trading etc.
REGULATION OF STOCK EXCHANGES
The securities contracts (regulation) act is the basis for operations of the stock
exchanges in India. No exchange can operate legally without the government
permission or recognition. Stock exchanges are given monopoly in certain areas under
section 19 of the above Act to ensure that the control and regulation are facilitated.
Recognition can be granted to a stock exchange provided certain conditions are
satisfied and the necessary information is supplied to the government. Recognition
can also be withdrawn, if necessary. Where there are no stock exchanges, the
government licenses some of the brokers to perform the functions of a stock exchange
in its absence.
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI).
SEBI was set up as an autonomous regulatory authority by the government of India in
1988 to protect the interests of investors in securities and to promote the
development of, and to regulate the securities market and for matter connected
therewith or incidental thereto. It is empowered by two acts namely the SEBI Act,
1992 and the securities contract (regulation) Act, 1956 to perform the function of
protecting investors rights and regulating the capital markets.
56
BOMBAY STOCK EXCHANGE

This stock exchange, Mumbai, popularly known as BSE was
established in 1875 as The Native share and stock brokers association, as a
voluntary non-profit making association. It has an evolved over the years into its
present status as the premiere stock exchange in the country. It may be noted that the
stock exchanges the oldest one in Asia, even older than the Tokyo stock exchange,
which was founded in 1878.
The exchange, while providing an efficient and transparent market for
trading in securities, upholds the interests of the investors and ensures redressed of
their grievances, whether against the companies or its own member brokers. It also
strives to educate and enlighten the investors by making available necessary
informative inputs and conducting investor education programs.
A governing board comprising of 9 elected directors, 2 SEBI nominees, 7
public representatives and an executive director is the apex body, which decides is the
apex body, which decides the policies and regulates the affairs of the exchange. The
Exchange director as the chief executive offices is responsible for the daily today
administration of the exchange.
BSE INDICES :
In order to enable the market participants, analysts etc., to track the various
ups and downs in the Indian stock market, the Exchange has introduced in 1986 an
equity stock index called BSE-SENSEX that subsequently became the barometer of
the moments of the share prices in the Indian stock market. It is a Market
capitalization weighted index of 30 component stocks representing a sample of large,
well-established and leading companies. The base year of sensex 1978-79. The
Sensex is widely reported in both domestic and international markets through print as
well as electronic media.
Sensex is calculated using a market capitalization weighted method. As per
this methodology the level of the index reflects the total market value of all 30component stocks from different industries related to particular base period. The total
market value of a company is determined by multiplying the price of its stock by the
nu7mber of shared outstanding. Statisticians call index of a set of combined variables
(such as price and number of shares) a composite Index. An indexed number is used
to represent the results of this allocution in order to make the value easier to go work
57
with and track over a time. It is much easier to graph a chart based on Indexed values
than on based on actual valued world over majority of the well-known Indices are
constructed using Market capitalization weighted method.
In practice, the daily calculation of SENSEX is done by dividing the
aggregate market value of the 30 companies in the index by a number called the Index
Divisor. The divisor is the only link to the original base period value of the SENSEX.
The Devisor keeps the Index comparable over a period value of time and if the
references point for the entire Index maintenance adjustments. SENSEX is widely
used to describe the mood in the Indian stock markets. Base year average is changed
as per the formula new base year average = old base year average*(new market
value / old market value).
NATIONAL STOCK EXCHANGE
The NSE was incorporated in Nov, 1992 with an equity capital of Rs.25 crs.
The international securities consultancy (ISC) of Hong Kong has helped in setting up
NSE. ISC has prepared the detailed business plans and initialization of hardware and
software systems. The promotions for NSE were financial institutions, insurances,
companies, banks and SEBI capital market ltd, Infrastructure leasing and financial
services ltd and stock holding corporations ltd.
It has been set up to strengthen the move towards professionalization of the
capital market as well as provide nation wide securities trading facilities to
investors.NSE is not an exchange in the traditional sense where brokers own and
manage the exchange. A two tier administrative set up involving a company board and
a governing aboard of the exchange is envisaged.
NSE is a national market for shares PSU bonds, debentures and government
securities since infrastructure and trading facilities are provided.
NSE-NIFTY:
58
The NSE on Apr22, 1996 launched a new equity Index. The NSE-50. The new
Index which replaces the existing NSE-100 Index is expected to serve as an
appropriate Index for the new segment of future and option.
NIFTY mean National Index for fifty stocks. The NSE-50 comprises fifty
companies that represent 20 board industry groups with an aggregate market
capitalization of around Rs 1, 70,000 crs. All companies included in the Index have a
market capitalization in excess of Rs. 500 crs each and should have trade for 85% of
trading days at an impact cost of less than 1.5%. The base period for the index is the
close of price on Nov 3 1995, which makes one year of completion of operation of
NSEs capital market segment. The base value of the index has been set at 1000.
NSE-MIDCAP INDEX
The NSE madcap index or the junior nifty comprises 50 stocks that represent
21st board industry groups and will provide proper representation of the midcap
segment of the Indian capital market. All stocks in the Index should have market
capitalization of grate than Rs.200 crs and should have traded 85% of the trading days
at an impact cost of less than 2.5%.
The base period for the index is Nov 4 1996, which signifies 2 years for
completion of operations of the capital market segment of the operations. The base
value of the Index has been set at 1000.Average daily turnover of the present scenario
258212 (Laces) and number of average daily trades 2160(Laces).there are 24 stock
exchanges recognized under the securities contract (regulation Act, 1956
ONLINE TRADING
online trading refers to buying and selling securities via the Internet or other
electronic means such a wireless access, touch-tone telephones, and other new
technologies .With online trading, in most cases customers access a brokerage firms
website through their regular internet services provider. Once there , customers
may consult information provided on the website and log into their account to
place orders and monitor account activity. Technology is revolutionizing every field of
human endeavor and activity. The rapid growth in number, volume and value of
59
securities in the Indian capital Market expose the limitation of handling and
dealing in securities in physical /Paper mode ; the shortcomings of the market
became manifest in terms of bad deliveries ,delays in transfer and irregular settlement
etc.
The National Stock Exchange (NSE) followed by the stock exchange Mumbai
(BSE)in 1995,
first introduced electronic medium of trading. There was a time when an
individual investor has to go to an exchange trading Ring to have his order
executed .Today the premier exchanges of the country want To come to his door
step ,or rather his desktop .Relationship marketing is really gaining momentum.The
countrys two biggest exchanges the BSE and NSE have embraced the internet in an
effort to leverage the power of this medium to reach out to the hitherto untapped
masses. Says NSE former managing director ,RH .PATIL, our internet initiative
is in line with our basic thrust which we have been following from day one ,when we
Were conceived as a National Exchange with a mission to spread every where , To be
as close to investors as possible .In India Geojit securities, a leading brokage house
has the distinction of being the first to offer online Trading as well as
forderivatives
According to functional basis financial markets are classified into two types.
They are
Money markets (short-term)
Capital markets (long-term)
According to institutional basis again classified in to two types. They are
Organized financial market
Non-organized financial market.
The organized market comprises of official market represented by recognized
institutions, bank and government (SEBI) registered/controlled activities and
60
intermediaries. The unorganized market is composed of indigenous bankers,

moneylenders, individual professional and non-professionals.
MONEY MARKET:
Money market is a place where we can raise short-term capital.
Again the money market is classified in to
Inter bank call money market
Bill market and
Bank loan market Etc.
Eg; treasury bills, commercial papers, CD's etc.
CAPITAL MARKET:
Capital market is a place where we can raise long-term capital.
Again the capital market is classified in to 2 types and they are
Primary market and
Secondary market.
Eg: Shares, Debentures, and Loans etc.
1.2 PRIMARY MARKET
Primary market is generally referred to the market of new issues or market for
mobilization of resources by the companies and government undertakings, for new
projects as also for expansion, modernization, addition, diversification and
upgradation. Primary market is also referred to as New Issue Market. Primary market
operations include new issues of shares by new and existing companies, further and
right issues to existing shareholders, public offers, and issue of debt instruments such
as debentures, bonds, etc.
The primary market is regulated by the Securities and Exchange Board of
India (SEBI a government regulated authority).
Function:
The main services of the primary market are origination, underwriting, and
distribution. Origination deals with the origin of the new issue. Underwriting contract
make the shares predictable and remove the element of uncertainty in the subscription.
Distribution refers to the sale of securities to the investors.
The following are the market intermediaries associated with the market:
61
1. Merchant banker/book building lead manager

2. Registrar and transfer agent
3. Underwriter/broker to the issue
4. Adviser to the issue
5. Banker to the issue
6. Depository
7. Depository participant
Investors protection in the primary market:
To ensure healthy growth of primary market, the investing public should be
protected. The term investor protection as a wider meaning in the primary market. The
principal ingredients of investors protection are
Provision of all the relevant information
Provision of accurate information and
Transparent allotment procedures without any bias.
1.3 SECONDARY MARKET

The primary market deals with the new issues of securities. Outstanding
securities are traded in the secondary market, which is commonly known as stock
market or stock exchange. The secondary market is a market where scrips are
traded. It is a market place which provides liquidity to the scrips issued in the
primary market. Thus, the growth of secondary market depend on the primary market.
More the number of companies entering the primary market, the greater is the volume
of trade at the secondary market. Trading activities in the secondary market are done
through the recognized stock exchanges which are 23 in number including Over The
Counter Exchange of India, National Stock Exchange of India and Interconnected
Stock Exchange of India.
Secondary market operations involve buying and selling of securities on the
stock exchange through its members. The companies hitting the primary market are
mandatorily required to list their shares on one or more stock exchanges in India
62
including stock exchanges. Listing of scrips provides liquidity and offers an

opportunity to the investors to buy or sell the scrips.
The following intermediaries in the secondary market:
1. Broker/member of stock exchange buyers broker and sellers broker
2. Portfolio Manager
3. Investment advisor
4. Share transfer agent
5. Depository
6. Depository participants.
63
7.
1.4 FUNCTIONS OF STOCK EXCHANGE:
Maintains activity training
Fixation of prices
Ensures safe and fare dealings
Aids in financing the industry
Dissemination of information
Performance end users
Self regulating organization
REGULATORY FRAME WORK
A comprehensive legal framework was provided by the Securities Contract
Regulation Act, 1956 and Securities Exchange Board of India 1952. Three tier
regulatory structure comprising
Ministry of finance
The Securities And Exchange Board of India
Governing body
1.4 Members of the stock exchange:
The securities contract regulation act 1956 has provided uniform regulation for the
admission of members in the stock exchanges. The qualifications for becoming a
member of a recognized stock exchange are given below:
The minimum age prescribed for the members is 21 years.
He should be an Indian citizen.
He should be neither a bankrupt nor compound with the creditors.
He should not be convicted for fraud or dishonesty.
He should not be engaged in any other business connected with a company.
He should not be a defaulter of any other stock exchange.
The minimum required educational is a pass in 12th standard examination.
Meaning of demat:
A demat account allows you to buy, sell and transact shares without the
endless paperwork and delays. It is also safe, secure and convenient. Demat refers
to a dematerialized account. Just as you have to open an account with a bank if
you want to save your money, make cheque payments etc, you need to open a
64
demat account if you want to buy or sell stocks. So it is just like a bank account
where actual money is replaced by shares.
Gone are the days of trading on the floor. Technology has changed the landscape of the
stock markets. The look of the stock exchanges has undergone metamorphic changes in the
recent years. Prior to online trading, regional stock exchange was playing a very important
role in capital markets, as they were local investors.
Regional SE, which was unable to interact with other SEs started developing this
own screen based trading and connecting to other scrips which were not available with
them. This also helped in accessing the quotes and other market information from other
stock exchange which proved vital in the functioning of the system as a whole.
The trading network is depicted in given below NSE has main computer which is
connected through Very Small Aperture Terminal (VSAT) installed at its office. The main
computer runs on a fault tolerant STRATUS mainframe computer at the Exchange. Brokers
have terminals (identified as the PCs in the given picture) installed at their premNSBLs
which are connected through VSATs/ leased lines/modems. An investor informs a broker to
place an order on his behalf.
The broker enters the order through his PC, which runs under Windows NT and
sends signal to the satellite via VSAT/leased line/modem. The signal is directed to
mainframe computer at NSE via VSAT at NSEs office. A message relating to the order
activity is broadcast to the respective member. The order confirmation message is
immediately displayed on the PC of the broker. This order matches with the existing passive
order(S) other NSBL it waits for the active orders to enter the system. On order matching, a
message is broadcast to the respective member.
The clearing and settlement mechanism in India securities market has witnessed several
innovations during the last decade. These include use of the state-of-art information
technology, compression of settlement cycle, dematerialization and electronic transfer of
securities, securities lending and borrowing, professionalisation of trading members, finetuned risk management system, emergence of clearing corporation to assume counterparty
risk etc., though many these are yet to permeate the whole market.
Till recently, the stock exchanges in India were following a system of account
period settlement for cash market transactions, expert for transaction in a few active
65
securities, which were settled under t+3 rolling settlement. The rolling settlement has been
introduced for all securities. With effect from April 1, 2003 T+2 rolling settlement has been
introduced.
The stock exchange was also offering deferral products to provide leverage
to members to postpone their settlement obligations. The transactions are not settled
immediately but after 2 days after the trade day. The members receive the funds/securities in
accordance with the pay-in/pay-out schedules notified by the respective exchanges. Given
the growing volume of trades and market volatility, the time gap between trading and
settlement gives NSBL to settlement risk. In recognition of this, the exchanges and their
clearing corporation employ risk management practices to ensure timely settlement of
trades.
The regulators have also prescribed elaborate margining and capital
adequacy standards to secure market integrity and protect the interests of investors. The
exchanges not providing counter-party guarantee have been advNSBLd by SEBI to set up
trade guarantee funds, which would honour pay-in liabilities in the event of default by a
member. In pursuance to this, 16 out of 23 exchanges have set up trade/settlement guarantee
funds. The trades are settled irrespective of default by a member and the exchange follows
up the defaulting member subsequently for recovery of his dues to the exchange. The
market has full confidence that settlements will take place in time and will be completed
irrespective of possible default by isolated trading members.
Movement of securities has become almost instantaneous in the dematerialized
environment. Two depositories viz., National Securities Depositories Ltd. (NSDL) and
Central Depositories Services Ltd. (CDSL) provide electronic transfer securities and more
then 99% of turnover is settled in dematerialized form. All actively traded scrips are held,
traded and settled in demat form. The obligations of members are downloaded to
members/custodians by the clearing agency.
The members/custodians make available the required securities in their pool
accounts with Depository Participants (DPs) by the prescribed pay-in time for securities.
The depository transfers the securities from the pool accounts of members/custodians to the
settlement account of the clearing agency. As per the schedule determined by the depository
66
from the settlement account of the clearing agency to the pool accounts of
members/custodians. The pay-in and pay-out of securities is affected on the same day for all
settlements.
67
CHAPTER-5
DATA ANALSYSIS
AND
INTERPRETATION
68
Listing Procedure
An Issuer has to take various steps prior to making an application for listing its
securities on the NSE. These steps are essential to ensure the compliance of certain
requirements by the Issuer before listing its securities on the NSE. The various steps
to be taken include:
Submission of Application
In case the company fulfils the criteria, please send the following information for
further processing :
1. A brief note on the promoters and management.
2. Company profile.
3. Copies of the Annual Report for last 3 years.
4. Copies of the Draft Offer Document.
5. Memorandum & Articles of Association.
Listing Procedure
Rule 19(2) (a) of the Securities Contracts (Regulation) Rules, 1957 requires that the
Articles of Association of the Issuer wanting to list its securities must contain
provisions as given hereunder.
The Articles of Association of an Issuer shall contain the following provisions
namely:
h.
That there shall be no forfeiture of unclaimed dividends before the claim
becomes barred by law;

i. That a common form of transfer shall be used;
69
j. that fully paid shares shall be free from all lien and that in the case of partly
paid shares the Issuer's lien shall be restricted to moneys called or payable at a
fixed time in respect of such shares;
k. That registration of transfer shall not be refused on the ground of the transferor
being either alone or jointly with any other person or persons indebted to the
Issuer on any account whatsoever;
l. That any amount paid up in advance of calls on any share may carry interest
but shall not in respect thereof confer a right to dividend or to participate in
profits;
m. That option or right to call of shares shall not be given to any person except
with the sanction of the Issuer in general meetings.
n. Permission for Sub-Division/Consolidation of Share Certificate.
Note: The Relevant Authority may take exception to any provision contained in the
Articles of Association of an Issuer which may be deemed undesirable or
unreasonable in the case of a public company and may require inclusion of specific
provisions deemed to be desirable and necessary.
If the Issuer's Articles of Association is not in conformity with the provisions as stated
above, the Issuer has to make amendments to the Articles of Association. However,
the securities of an Issuer may be admitted for listing on the NSE on an undertaking
by the Issuer that the amendments necessary in the Articles of Association to bring
Articles of Association in conformity with Rule 19(2)(a) of the Securities Contract
(Regulation) Rules, 1957 shall be made in the next annual general meeting and in the
meantime the Issuer shall act strictly in accordance with prevalent provisions of
Securities Contract (Regulation) Act, 1957 and other statutes.
It is to be noted that any provision in the Articles of Association which is not in tune
with sound corporate practice has to be removed by amending the Articles of
Association.
Listing Procedure
70
The Issuer shall file the draft prospectus and application forms with NSE. The draft
prospectus should have been prepared in accordance with the statutes, notifications,
circulars, guidelines, etc. governing preparation and issue of prospectus prevailing at
the relevant time. The Issuers may particularly bear in mind the provisions of
Companies Act, Securities Contracts (Regulation) Act, the SEBI Act and the relevant
subordinate legislations thereto. NSE will peruse the draft prospectus only from the
point of view of checking whether the draft prospectus is in accordance with the
listing requirements, and therefore any approval given by NSE in respect of the draft
prospectus should not be construed as approval under any laws, rules, notifications,
circulars, guidelines etc. The Issuer should also submit the SEBI acknowledgment
card or letter indicating observations on draft prospectus or letter of offer by SEBI.
Listing Procedure :
Submission of Application :
For Issuers listing on NSE for the first time
Listing of further Issues by Issuers already listed on NSE
Listing Fees
Security deposit (for new & fresh issues and when NSE is the Regional Stock
Exchange)
Supporting documents
Submission of Application (For Issuers listing on NSE for the first time)
Issuers desiring to list existing/new securities on the NSE shall make application for
admission of their securities to dealings on the NSE in the forms prescribed in this
regard as per details given hereunder or in such other form or forms as the Relevant
Authority may from time to time prescribe in addition thereto or in modification or
substitution thereof.
Appendix 'A' - Clauses of Articles of Association.
Appendix 'B'- Application Letter for Listing.
Appendix 'C-1' - Listing Application providing pre-issue details of securities.
71
Appendix 'C-2' - Listing Application providing post-issue details of securities.

Appendix 'D'- Checklist for supporting documents ( as applicable to the issuer)
Appendix 'F'- Listing Agreement
Submission of Application (Listing of further Issues by Issuers already listed on
NSE)
Issuers whose securities are already listed on the NSE shall apply for admission to
listing on the NSE of any further issue of securities made by them. The application for
admission shall be made in the forms prescribed in this regard or in such other form or
forms as the Relevant Authority may from time to time prescribe in addition thereto or
in modification or substitution thereof.
Appendix 'G'- Application Letter for Listing of further issues.
Appendix 'H' - Listing Application providing details of securities.
Appendix 'I' - Checklist for supporting documents submitted (as applicable)
Listing Fees
The listing fees depend on the paid up share capital of the Company:
Particulars
Amount (Rs.)
7,500
Annual Listing Fees

Companies with paid up share and/or debenture capital:
Of Rs.1 crore
4,200
Above Rs.1 crore and up to Rs.5 crores
8,400
14,000
28,000
42,000
Above Rs.50 crores
70,000
Companies which have a paid up capital of more than Rs. 50 crores will pay
72
additional listing fees of Rs. 1400 for every increase of Rs. 5 crores or part thereof in
the paid up share/debenture capital.
Submission of Application (Security Deposit)

(Payable only for new and fresh issues and only when NSE is the Regional Stock
Exchange)
The Relevant Authority shall not grant admission to dealings of securities of an Issuer
which is not listed or of any new (original or further) issue of securities of an Issuer
excepting Mutual Funds, which is listed on the NSE unless the Issuer deposits and
keeps deposited with the NSE (in cases where the securities are offered for
subscription, whether through the issue of a prospectus, letter of offer or otherwise,
and NSE is the Regional Stock Exchange for the Issuer) an amount calculated at 1%
of the amount of securities offered for subscription to the public and or to the holders
of existing securities of the Issuer, as the case may be for ensuring compliance by the
Issuer within the prescribed or stipulated period of all requirements and conditions
hereinafter mentioned and shall be refundable or forfeitable in the manner hereinafter
stated:
5. The Issuer shall comply with all prevailing requirements of law including all
requirements of and under any notifications, directives and guidelines issued
by the Central Government, SEBI or any statutory body or local authority or
any body or authority acting under the authority or direction of the Central
Government and all prevailing listing requirements and conditions of the NSE
and of each recognized Stock Exchange where the Issuer has applied for
permission for admission to dealings of the securities, within the prescribed or
stipulated period;
6. If the Issuer has complied with all the aforesaid requirements and conditions
including, wherever applicable, its obligation under Section 73 (or any
statutory modification or re-enactment thereof) of the Companies Act, 1956
and obligations arising therefrom, within the prescribed or stipulated period,
and on obtaining a No Objection Certificate from SEBI and submitting it to
73
NSE , NSE shall refund to the Issuer the said deposit without interest within
fifteen days from the expiry of the prescribed or stipulated period;
7. If on expiry of the prescribed or stipulated period or the extended period
referred to hereafter, the Issuer has not complied with all the aforesaid
requirements and conditions, the said deposit shall be forfeited by the NSE, at
its discretion, and thereupon the same shall vest in the NSE. Provided the
forfeiture shall not release the Issuer of its obligation to comply with the
aforesaid requirements and conditions;
8. If the Issuer is unable to complete compliance of the aforesaid requirements
and conditions within the prescribed or stipulated period, the NSE, at its
discretion and if the Issuer has shown sufficient cause, but without prejudice to
the obligations of the Issuer under the laws in force to comply with any such
requirements and conditions within the prescribed or stipulated period, may
not forfeit the said deposit but may allow such further time to the Issuer as the
NSE may deem fit; provided that
a. the Issuer has at least ten days prior to expiry of the prescribed or
stipulated period applied in writing for extension of time to the NSE
stating the reasons for non-compliance, and
b. the Issuer, having been allowed further time by the NSE, has before
expiry of the prescribed or stipulated period, published in a manner
required by the NSE, the fact of such extension having been allowed;
provided further that where the NSE has not allowed extension in
writing before expiry of the prescribed or stipulated period, the request
for extension shall be deemed to have been refused; provided also that
any such extension shall not release the Issuer of its obligations to
comply with the aforesaid requirements and conditions.
3. 50% of the above mentioned security deposit should be paid to the NSE in
cash. The balance amount can be provided by way of a bank guarantee, in the
format prescribed by or acceptable to NSE. The amount to be paid in cash is
limited to Rs.3 crores
Submission of Application (Supporting Documents)
74
Issuers applying for admission of their securities to dealings on the NSE shall submit
to the NSE the following:
Documents and Information

The documents and information prescribed in Appendix D or Appendix I (as
the case may be) to this Regulation or such other documents and information
as the Relevant Authority may from time to time prescribe, in addition thereto
or in modification or substitution thereof together with any other documents
and information which the Relevant Authority may require in any particular
case;
Distribution Schedules
Distribution Schedules duly completed in respect of each class and kind of
security in the form prescribed in Appendix E (Table I, II & III) to this
Regulation or in such other form or forms as the Relevant Authority may from
time to time prescribe in addition thereto or in modification or substitution
thereof.

All Issuers whose securities are listed on the NSE shall comply with the listing
conditions and requirements contained in the Listing Agreement Form appearing in
Appendix F to this Regulation or such other conditions and requirements as the
Relevant Authority may from time to time prescribe in addition thereto or in
modification or substitution thereof.
Equity
March-2016
Kavita Fabrics
Channel Nine
Sunstar Realty
February-2016
Esteem Bio
January-2016
Eco Friendly
December-2015
Bharti Infratel
PC Jeweller
CARE
Veto Switch
Issue Price
Current Price
%Gain/Loss
40.00
25.00
20.00
40.90
26.25
23.60
2.25
5.00
18.00
25.00
47.15
88.60
25.00
34.15
36.60
220.00
135.00
750.00
50.00
188.55
119.70
802.00
51.50
-14.30
-11.33
6.93
3.00
75
Tara Jewels
November-2015
Bronze Infra
October-2015
RCL Retail
Anshus Clothing
September-2015
Comfort Comm
Thejo Engg
SRG Housing Fin
Jointeca Edu
August-2015
Jupiter Infomed
Sangam Advisors
July-2015
VKS Projects
Max Alert Syste
May-2015
Looks Health
Speciality Rest
Tribhovandas
April-2015
MT Educare
NBCC
March-2015
Olympic Cards
BCB Finance
MCX India
February-2015
V-Mart Retail
230.00
175.00
-23.91
15.00
6.90
-54.00
10.00
27.00
9.80
31.70
-2.00
17.41
10.00
402.00
20.00
15.00
27.25
27.25
21.00
14.80
172.50
-93.22
5.00
-1.33
20.00
22.00
24.60
22.00
23.00
0.00
55.00
20.00
14.30
94.95
-74.00
374.75
40.00
150.00
120.00
165.00
170.50
242.80
312.50
13.67
102.33
80.00
106.00
87.70
137.15
9.63
29.39
30.00
25.00
1032.00
52.10
25.15
914.95
73.67
0.60
-11.34
210.00
175.00
-16.67
Kavitha fabrics
Shares of Gujarat-based Kavita Fabrics rose 2.25 percent to Rs 40.90 in initial trade
on Tuesday, but failed to sustain those 90 paise gains for long.
At 10:51 hours IST, the stock was quoting at Rs 40 per share on Bombay Stock
Exchange SME platform, with trading volumes of 1.89 lakh equity shares.
The company that manufactures synthetic fabrics from man-made yarns by using
weaving technology had launched its issue during February 20-26, 2016.
76
Kavita Fabrics raised Rs 5.1 crore through public issue by allotting 12.75 lakh equity
shares of Rs 10 each at Rs 40 per share.
Textile firm makes synthetic fabrics in the form of semi-finished sarees and dress
materials. The company intends to use issue proceeds for long-term working capital
requirement and general corporate expenses.
Shares of Channel Nine Entertainment remained locked at 5 percent upper circuit

since opening trade on day one.
The stock closed at Rs 26.25 as against issue price of Rs 25 on Bombay Stock
Exchange after trading with volumes of 12000 equity shares.
There were pending buy orders of 7.08 lakh equity shares, with no sellers available.
Channel Nine is engaged in the business of production, distribution television serials,
films, corporate films, feature films, documentaries, and marketing of sports and
entertainment events.
Meanwhile, the media and entertainment company raised Rs 11.67 crore through
public issue of 46.68 lakh equity shares
77
Funds raised through the issue are intended to be utilised for financing the estimated
expenditure of production of two films; strengthening distribution operations; and
brand building.
Realty firm Sunstar Realty Development closed at day's high of Rs 22.50 on Bombay
Stock Exchange SME platform, up 12.5 percent over its issue price of Rs 20 per share
on Monday.
The price was decided at Rs 21.45 in pre-opening session. The stock touched a low of
Rs 21.20 in initial trade around 10 am but then immediately bounced back and
touched a high of Rs 22.50.
It remained at day's high for major part of the session today.
Sunstar raised Rs 10.62 crore through the public issue of 53.10 lakh equity shares at
Rs 20 per share.
78
Realty firm intends to use issue proceeds for financing the expenditure of work order
awarded by Jain Infraprojects Limited; funding the development & construction
related expenditures of planned projects; and brand building & general corporate
purposes.
79
SUGGESTIONS:Always read the prospectus

Investor dont put all faith in it, but you should never skip reading the prospectus. It
may be a dry read, but the prospectus lays out the company's risks and opportunities,
along with the proposed uses for the money raised by the IPO.
Pick a company with strong brokers

Try to select a company that has a strong underwriter. We're not saying that the big
investment banks never bring duds public, but in general, quality brokerages bring
quality companies public. Exercise more caution when selecting smaller brokerages,
because they may have looser underwriting standards.
Wait for First Base

At some point every IPO stops advancing and starts moving sideways or declines -it's called building a base. It is safer to buy an IPO after it breaks out of its first base
and resumes the advance -- typically, within three to six months of the IPO date.
Read credit rating agencies tips
Watch How a Stock Opens for Trading
80
If a stock opens above the subscription price, this indicates strong demand and
potentially more upside; if it opens below the subscription price, it is likely to
continue to fall as disgruntled shareholders will rush to sell their shares to cut losses.
81
Conclusion
Public issues have become a low cost source of raising finance for the Companies
whereby expansion of business can be done on the basis of outside funds. Although,
book building system was introduced to remove the flaws in the then existing capital
market, the system is still suffering from various limitations. Some of them are as are
as follows:
1. Book-building is appropriate for mega issues only. In the case of the potential
investors, the companies can adjust the attributes of the offer according to the
preferences of the potential investors. It may not be possible in big issues since the
risk-return preference of the investors cannot be estimated easily;
2. The issuer company should be fundamentally strong and well known to the
investors;
3. The book-building system works very efficiently in matured market conditions. In
such circumstances, the investors are aware of the various parameters affecting the
market price of the securities. But, such conditions are not commonly found in
practice;
4. There is a possibility of price rigging on listing as promoters may try to bail out
syndicate members.
The spirit beyond the introduction of book-building mechanism in India is to discover
the right price for a public issue, which in turn would eliminate unreasonable issue
pricing by greedy promoters. The success of the book-building system depends on cooperation among the Book Runner Lead Manager, Issuing Company, Securities and
Exchange Board of India (Regulator), and Investors. It is expected that over a period
of time, market will adapt to the system and the same will become a successful
mechanism in the times to come.
82
BIBLIOGRAPHY
www.ipohome.com
www.essortment.com
www.investopedia.com
www.ipoavenue.com
www.moneycontrol.com
www.wikipedia.com
www.moneycentral.hoovers.com
www.bullishindian.com
www.jrgsecurites.com
www.investorguide.com
83

Project Report on Listing Procedure in NSE and BSE (IPO Listing Procedures

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Project Report on Listing Procedure in NSE and BSE (IPO Listing Procedures

Uploaded by

Copyright:

Available Formats

A PROJECT REPORT ON

: DATA ANALYSIS AND

FINDINGS AND SUGGESTIONS

Objectives of the study:

To study how the Investors awareness to apply for IPOs.

To know about the nse-bse listing procedure

To study the factors before going to apply Initial public offer.

To study the marketing methods adopted by the companies for creating

To analyze recent listed companies in India

SCOPE OF THE STUDY:

provide liquidity to securities;

mobilize savings for economic development;

protect interest of investors by ensuring full disclosures.

These benefits include:

Higher public and investor profile listing generally raises organisations

Institutional investment public listing means organisation will find it easier

Improved valuation being listed generates an independent valuation of

A (secondary) market for organisations shares trading of shares on gives

Alignment of employee/management interests the process of remunerating

Reassurance of customers and suppliers organisations listed on generally

READTNESS OF ORGANISATION TO GET LISTED :

What are the organisation's long-term goals and strategies?

How will these be resolved in a listed environment?

Are directors and senior managers prepared for greater disclosure,

Is organisations culture ready for listing?

Are there tax issues to be resolved?

Are strategies in place to retain key employees and key customers?

What initiatives (e.g. acquisitions) need to be completed before listing?

Are your operational, financial and management information systems

Have you taken account of corporate governance best practice?

A premier market place

Short settlement cycles

Broadcast of corporate announcements

Trade statistics for listed companies

Investor service centers

Nominal listing fees

For Initial Public Offerings (IPOs)

2. Conditions Precedent to Listing:

3. Atleast three years track record of either:

The applicant, promoters/promoting company(ies), group companies,

The applicants arrangements envisaged are in place for servicing its

The applicant, promoters/promoting company(ies), group companies,

Defaults in respect of payment of interest and/or principal to the

In respect of the track record of the directors, relevant disclosures may be

Checklist for Eligibility

Existing Companies listed on other stock exchanges

The company has not received any winding up petition admitted by a

The applicant, promoters/promoting company(ies), group

The applicants arrangements envisaged are in place for

The applicant, promoters/promoting company(ies), group

defaults in respect of payment of interest and/or principal to the

e. Track Record of Director(s) of the Company

Approval of Memorandum and Articles of Association

Approval of draft prospectus

Listing conditions and requirements

That there shall be no forfeiture of unclaimed dividends before the claim

becomes barred by law;

Appendix 'C-2' - Listing Application providing post-issue details of securities.

Annual Listing Fees

Above Rs.1 crore and up to Rs.5 crores

Above Rs.5 crores and up to Rs.10 crores

Above Rs.10 crores and up to Rs.20 crores

Above Rs.20 crores and up to Rs.50 crores