The Securities and Exchange Board of India (Sebi) and the Ministry of corporate affairs is considering making dematerialisation (demat) of shares mandatory for all unlisted companies. While listed firms are required to maintain shares in dematerialised form, there is no such specific requirement in the case of unlisted entities — both public and private.
Sebi rules require all listed companies to dematerialise shares. About 70,000 public limited companies are unlisted and more than 1 million private limited companies are registered with the corporate affairs ministry.
An unlisted public company is one which has more than 50 shareholders, a higher minimum capital requirement of Rs5 lakh and needs to comply with statutory requirements such as holding meeting with shareholders and capping director remuneration.
A meeting of the depositories National Securities Depository Ltd and Central Depository Services Ltd on 12 September 2017 to gauge their preparedness and the transition requirements to meet the proposal. Considering the number of companies and shares, it could be a massive exercise.
The move will bring down the number of frauds relating to dividend payouts and equity shares. In the absence of 100% demat of securities of listed or unlisted public companies, fundamentally weak companies can always issue duplicate shares to their promoters/persons, which can be pledged with different financiers to get funding.
Dematerialisation, or demat, is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and is aimed at eliminating fraud and theft while making trades trackable. India embarked on the process in 1996 and almost all shares of listed companies are held in the demat form. India has about 6,000 listed companies.
The Metropolitan Stock Exchange of India (MSEI) plans to launch an initial public offering (IPO) in the next two years, following in the footsteps of larger peers, the Bombay Stock Exchange and National Stock Exchange.
The exchange is looking to turn profitable in the next two years, and it plans to go public at the end of this turnaround period, said the chief operating officer Abhijit Chakraborty during an event on 12 July 2017. The exchange, formerly known as MCX-SX, currently has a net worth of around Rs 160 crore, cash liquidity of about Rs 60 crore and operating costs at just below Rs 30 crore, said Chakraborty.
MSEI plans to launch two new derivative products in the currency segment, one new interest rate futures (IRF) product and two new equity indices linked to derivative contracts by next year. India’s third national-level stock exchange has been operational since 31 December 2012. More than 1,500 stocks are traded on the MSEI currently.
MSEI, India’s new stock exchange, is recognised by Securities & Exchange Board of India. It is India’s third functional and recognised stock exchange after BSE and NSE. There is huge demand for shares of MSEI due to strong listing of BSE and upcoming IPO of NSE. A clutch of financial institutions now own more than 34% of MSEI, as do investors including Rakesh Jhunjhunwala, Radhakishan Damani and Nemish Shah.
Leading securities depository Central Depository Services (CDSL) has received clearance from the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). Its public issue comprises an offer for sale by shareholders including BSE, State Bank of India, Bank of Baroda and Calcutta Stock Exchange.
Going by the draft papers, little over 3.5 crore shares would be offloaded by CDSL through the offer for sale (OFS) route and out of the total, 7 lakh shares would be reserved for the employees. Four shareholders — BSE, SBI, Bank of Baroda and the Calcutta Stock Exchange — would be selling stakes in CDSL through the initial share sale. The IPO is estimated to be worth Rs 450 crore ($67 million), valuing CDSL around Rs 1500 crore.
BSE has got clearance for its long-awaited initial public offering (IPO) from the Securities and Exchange Board of India (Sebi).
There is currently a unique and attractive pre-IPO investment opportunity available in shares of BSE. The recent market buoyancy has triggered an IPO boom. Companies with good fundamentals are seeing huge oversubscription, leaving investors with nil or low allotment. For assured allotment of required quantity at attractive price and more details and updates, please call on 08108234400 or email on email@example.com visit buysellunlistedshares.com
Reports indicated that the BSE would issue shares at Rs 1,000 per share, giving the IPO a size of up to Rs 1,500 crore. The IPO is likely to be launched as early as this month. Earlier, in November 2016, BSE had consolidated its share capital, whereby face value of each share was increased from Re 1 to Rs 2.
BSE had filed a draft prospectus for the IPO with Sebi in September 2016, seeking to list its shares on larger rival National Stock Exchange (NSE).
Established in 1875, BSE (earlier known as Bombay Stock Exchang) is Asia’s oldest stock exchange. Currently, Multi Commodity Exchange of India (MCX) is the only listed exchange in the country.
The year 2016 saw 26 companies raise Rs 26,493.8 crore through the IPO route, according to data from primary market tracker Prime Database, while in 2015, 21 companies raised Rs 13,614.08 crore.
National Stock Exchange of India (NSE) has filed its initial public offering (IPO) prospectus with market regulator Securities and Exchange Board of India (Sebi). The NSE IPO could raise around Rs 10,000 crore, making it the largest IPO since Coal India Ltd’s Rs 15,200 crore IPO in October 2010. The offer may give the exchange a valuation of Rs 50,000-55,000 crore.
There is currently a unique and attractive pre-IPO investment opportunity available to investors buying unlisted shares. The recent market buoyancy has triggered an IPO boom. Companies with good fundamentals are seeing huge oversubscription, leaving investors with nil or very low allotment. For assured allotment of required quantity at attractive price and more details and updates, please call on 08108234400 or email on firstname.lastname@example.org
According to draft red herring prospectus (DRHP), existing shareholders of NSE are diluting a 22.5% stake in the exchange through an offer for sale. A total of 27 investors will be selling their shares through the IPO.
NSE rival BSE Ltd is also going public. BSE filed its DRHP in September 2016. Existing shareholders of BSE, Asia’s oldest bourse, intend to sell 29.96 million shares through the offer-for-sale route, according to its prospectus. The issue represents 27.43% of BSE’s pre-share sale capital.