Types & benefits of listing - tradecareer

                                        Types & benefits of listing


=> Initial Listing: If the shares or securities are to be listed for the 1st time by a 

company on a stock exchange is called initial listing.

=> Listing for Public Issue: When a company whose shares are listed on a SE comes 

out with a public issue of securities, it has to list such issue with the SE.

=> Listing for Rights Issue: When companies whose securities are listed on the SE

issue securities to existing shareholders on rights basis, it has to list such rights 

issues on the concerned SE.

=> Listing of Bonus Shares: Shares issued as a result of capitalization of profit through 

bonus issue shall list such issues also on the concerned SE.

                                                                            




=> Listing for Merger or Amalgamation: When new shares are issued by an 

amalgamated company to the shareholders of the amalgamating company, such 

shares are also required to be listed on the concerned SE.

Multiple Listing

A company with a paid-up capital of over Rs. 5 crores should list its securities or have 

its securities permitted for trading, on at least one SE having nationwide Trading 

Terminals.

Multiple listing provides arbitrage opportunities to the investors, whereby they can 

make profit based on the difference in the prices prevailing in the said exchanges.

                                                                         


Benefits of Listing

The following benefits are available when securities are listed by a company in the SE

(i) Public image of the company is enhanced.

(ii) The liquidity of the security is ensured making it easy to buy and sell the 

securities in the SE.

(iii) Tax concessions are made available both to the investors and the companies,

(iv) Listing procedure compels company management to disclose important 

information to the investors enabling them to make crucial decisions with regard 

to keeping or disposing of such securities.

(v) Listed companies command better support such as loans & investments from 

Banks & FIs.

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