BSE issues norms for Direct Listing

BSE has came up with new guidelines for direct listing w.e.f 1st July, 2011


The companies which are listed on recognized stock exchanges and seeking listing on Bombay Stock Exchange Limited will be required to comply with the norms as given here under:

1 Issued and Paid up capital Minimum paid up capital of Rs. 10 crores
Minimum networth of Rs. 50 crores (excluding revaluation reserves) in 3 immediately preceding financial years

2 Networth
3 Profit making track record Distributable profits in terms of sec. 205 of Companies Act, 1956 for atleast 3 out of 5 immediately preceding financial years based on audited financial results with the last financial year reporting profit.

Provided that extraordinary income shall not be considered for calculating distributable profit.

Provided further that latest 3 Financial Years should comprise a period of atleast 12 months
4 Public Shareholding Meeting with the requirements of SCRA, SCRR and Listing Agreement.
5 No. of public shareholders Minimum 500
6 Trading in Compulsory Demat Minimum of 50% of the public shareholding should be held in demat form.
7 Listing track record with Recognized Stock Exchange Listed on any recognized Stock Exchange
8 Information Memorandum Information Memorandum as provided in Schedule II of Companies Act, 1956 to the extent applicable, as certified by the Company Secretary/ MD of the Company
9 Withdrawal/ Rejection Companies can make a fresh application after a period of 3 months

The company shall submit a confirmation from the recognized stock exchange(s) that:

  • entire issued capital of the company must be listed on the recognized stock exchange
  • no investor complaints pending against the company/ promoting companies/ promoter group companies where they are listed
  • the company is in compliance with clauses of the listing agreement, filings under SEBI regulations/ circulars, SCRA and SCRR
  • the securities proposed to be listed are not under suspension
  • Where the company or the promoters or promoter group entities or the directors are have been debarred or disciplinary action taken by SEBI or a recognized stock exchange, then a period of atleast 3 years has elapsed since the expiry of the debarment period.

Company should have its own website

The above norms will not be applicable to companies that are listed on recognized stock exchanges –

  • But seeking listing through further public offering (FPOs). In such cases, the IPO norms of the exchange will apply
  • But are compulsorily delisted by the exchange under SEBI (Delisting of Securities) Guidelines, 2003 or SEBI (Delisting of Equity Shares) Regulations, 2009. In such cases, the companies can seek listing by offer of sale through prospectus or further public offering through prospectus.
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