Questions and Answers on India's Stock Exchanges and Securities Dealing
Source: BSE 1. | What is listing?
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 government or other financial institution/corporation, municipalities, etc. | 2. | What are the requirements for a PSU to get listed on BSE?
A company will have to meet the conditions prescribed under SEBI ICDR Regulations 2009 as well as minimum listing requirements prescribed by the exchange for seeking listing of its equity shares on BSE | 3. | What is an Offer Document? Is it compulsory to issue an Offer Document?
An ‘Offer Document’ is a document which contains all the relevant information about the company, promoters, projects, financial details, objects of raising the money, terms of the issue etc, which is issued for the benefit of prospective investors, and is required to be filed with SEBI and the exchanges(s). A company coming out with a Public Offer has to compulsorily issue an Offer Document. | 4. | What is the time taken for preparation of an Offer Document?
The time taken for preparation of the DRHP depends upon the size of the company, and the industry to which it relates. The period varies between 2 to 6 months. | 5. | Please explain DRHP/RHP/Prospectus
DRHP stands for Draft Red Herring prospectus, which is filed with SEBI and the Exchanges. SEBI makes the DRHP filed by companies available on its website for inviting comments from the public.
RHP stands for Red Herring Prospectus. It does not have details of either price or number of shares being offered or the amount of issue. The price band is normally disclosed in the RHP. It incorporates all the changes suggested by SEBI. It is filed with ROC before the issue opens.
Prospectus is an Offer Document which contains all the relevant details including the final price and the number of shares issued. This is also required to be filed with ROC after the issue
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 government or other financial institution/corporation, municipalities, etc. | 2. | What are the requirements for a PSU to get listed on BSE?
A company will have to meet the conditions prescribed under SEBI ICDR Regulations 2009 as well as minimum listing requirements prescribed by the exchange for seeking listing of its equity shares on BSE | 3. | What is an Offer Document? Is it compulsory to issue an Offer Document?
An ‘Offer Document’ is a document which contains all the relevant information about the company, promoters, projects, financial details, objects of raising the money, terms of the issue etc, which is issued for the benefit of prospective investors, and is required to be filed with SEBI and the exchanges(s). A company coming out with a Public Offer has to compulsorily issue an Offer Document. | 4. | What is the time taken for preparation of an Offer Document?
The time taken for preparation of the DRHP depends upon the size of the company, and the industry to which it relates. The period varies between 2 to 6 months. | 5. | Please explain DRHP/RHP/Prospectus
DRHP stands for Draft Red Herring prospectus, which is filed with SEBI and the Exchanges. SEBI makes the DRHP filed by companies available on its website for inviting comments from the public.
RHP stands for Red Herring Prospectus. It does not have details of either price or number of shares being offered or the amount of issue. The price band is normally disclosed in the RHP. It incorporates all the changes suggested by SEBI. It is filed with ROC before the issue opens.
Prospectus is an Offer Document which contains all the relevant details including the final price and the number of shares issued. This is also required to be filed with ROC after the issue