NSE issues norms for cos listed on non-operational bourses

Leading bourse NSE has issued new norms, including net worth threshold, for listing of companies that are exclusively listed on non-operational stock exchanges.
Under the new norms, the firm seeking listing is required to have a net worth of at least Rs 10 crore or the paid-up equity capital of the company need to be at least Rs 5 crore, National Stock Exchange (NSE) said in a circular.
Besides, there should not be any disciplinary action against the firm by other stock exchanges and regulatory authorities in the past three years.
"The applicant company, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company 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," it added.

At least three years track record of the firm or promoters will be checked. For this purpose, the company will have to submit annual reports of three preceding financial years to NSE.
Also, the firm has to provide a "certificate to the exchange in respect of...The company has not been referred to Board for Industrial and Financial Reconstruction, net worth of the company has not been wiped out by the accumulated losses resulting in a negative net worth and the company has not received any winding up petition admitted by a court."

The exchange said, "exclusively listed companies of stock exchanges seeking de-recognition and/or exit and de-recognised stock exchanges shall be eligible for listing on the exchange subject to fulfilling the differential listing criteria."

The applicant should have paid dividend in at least two out of last three financial years immediately preceding the year in which listing application has been made.
Total number of public shareholders on the date of application should be at least 500. Besides, 100 per cent promoter holding and 50 per cent of public holding should be in compulsory demat mode.
The litigation record, of the applicant firm and its promoter groups, during the preceding three years need to be clarified to the exchange.
Besides, the applicant company and its promoters are required to disclose patterns of the preceding three years as per the regulatory requirements.