|
| You are here : Listing > FAQs |
|
|
|
Listing means admission of securities to dealings / trading on a Stock Exchange through an agreement. The objective of listing is to create liquidity and marketability to securities.
ICEL will provide a nation-wide trading facility for the companies listed on its Exchange, which will provide easy access to investors, easy access to capital, market depth and liquidity for the benefit of the investing public.
Companies desirous of listing their securities on the Exchange are required to fulfill the eligibility criteria for listing and shall comply with the SEBI (Issue of Capital & Disclosures Requirement) Regulations 2009.
|
|
|
|
Investment in public Issues/ rights issues
|
|
|
 Where can I get application forms for applying/ bidding for the shares ? |
|
Application forms for applying/bidding for shares are available with all syndicate members, collection centers, the brokers to the issue and the bankers to the issue.
In case you intend to apply through new process introduced by SEBI i.e. APPLICATIONS SUPPORTED BY BLOCKED AMOOUNT (ASBA), you may get the ASBA application forms
form the Self Certified Syndicate Banks.
It has been decided that non-retail investors i.e. Qualified Institutional Buyers and Non-Institutional Investors, making application in public/ rights issue shall
mandatorily make use of ASBA facility. In this regard, disclosures shall be made in the offer document such as in issue procedure section as part of payment instructions
|
|
|
| Is it compulsory for me to have a Demat Account ? |
|
|
As per the requirement, all the public issues of size in excess of Rs.10 crore, are to made compulsorily in demat mode. Thus,
if you intend to apply for an issue that is being made in a compulsory demat mode, you are required to have a demat account and
also have the responsibility to put the correct DP ID and Client ID details in the bid/application forms.
|
|
|
| Is it compulsory to have PAN ? |
|
|
Yes, it is compulsory to have PAN. Any investor who wants to invest in an issue should
have a PAN which is required to be mentioned in the application form. It is to be distinctly
understood that the photocopy of the PAN is not required to be attached along with the application
form at the time of making an application.
|
|
|
| For how many days an issue is required to be kept open ? |
|
Except as otherwise provided in these regulations] a public issue shall be kept open
for at least three working days but not more than ten working days including the days
for which the issue is kept open in case of revision in price band.
In case the price band in a public issue made through the book building process is revised,
the bidding (issue) period disclosed in the red herring prospectus shall be extended for
a minimum period of three working days :
Provided that the total bidding period shall not exceed ten working days.
|
|
|
| When do I get the allotment/ refund of shares ? |
|
For Book built public issues : 15 days of the closure of the issue
For Rights : 15 days of the closure of the issue
|
|
|
| How can I know about the demand for an issue at any point of time ? |
|
|
The status of bidding in a book built issue is available on the website of BSE/NSE on a consolidated basis. The data regarding bids is also
available investor category wise. After the price has been determined on the basis of bidding, the public advertisement containing, inter
alia, the price as well as a table showing the number of securities and the amount payable by an investor, based on the price determined,
is issued. However, in case of a fixed price issue, information is available only after the closure of the issue through a public advertisement,
issued within 10 days of dispatch of the certificates of allotment/ refund orders.
|
|
|
| How will I get my refund in an issue ? |
|
|
You can get refunds in an issue through various modes viz. registered/ordinary post, Direct Credit, RTGS (Real Time Gross Settlement), ECS (Electronic Clearing Service) and NEFT (National Electronic Funds Transfer).
As stated above, if you are residing in one of the 68 centers as specified by Reserve Bank of India, then you will get refunds through ECS only except where you are otherwise disclosed eligible under Direct Credit
and RTGS. If you are residing at any other center, then you will continue to get refunds through registered/ordinary post. You are therefore advised to read the instructions given in the prospectus/ abridged prospectus/
application form about centers. For more details, you may read subsection on "Electronic Clearing Scheme for Refunds".
|
|
|
| When will the shares allotted to be listed ? |
|
|
In book built public issue the listing of shares will be done within 12 days after the closure of the issue. In case of fixed price public issue, it will be done within 37 days after closure of the issue.
|
|
|
| How will I know which issues are coming to the market ? |
|
|
The information about the forthcoming issues may be obtained from the websites of Stock Exchanges. Further the issuer coming with an
issue is required to give issue advertisements in an English national Daily with wide circulation, one Hindi national newspaper
and a regional language newspaper with wide circulation at the place where the registered office of the issuer is situated.
|
|
|
| Where do I get the copies of the offer document ? |
|
|
The soft copies of the offer documents are put up on the website of Merchant banker and on the website of
SEBI under Reports/Documents section.Copies of the offer documents in hard form may be obtained from
the merchant banker or office of SEBI, SEBI Bhawan, Plot No. C4‐A “G” Block, BKC, Bandra (E), Mumbai ‐ 400051
on a payment of Rs 100 through Demand Draft.
|
|
|
| How do I find the status of offer documents filed by issuers with SEBI ? |
|
|
SEBI updates the processing status of offer documents on its website every week under the section in SEBI website.
The draft offer documents are put up on the website under Reports/Documents section. The final offer documents that are filed with SEBI/ROC are also put up for information under the same section.
|
|
|
| Whom do I approach if I have grievances in respect of non receipt of shares, delay in refund etc. ? |
|
|
You can approach the compliance officer of the issue, whose name and contact number is mentioned on the cover page of the Offer Document.
You can also address your complaints to SEBI at the following address: Office of Investor Assistance & Education, Securities & Exchange
Board of India, C4A, G Block, Bandra Kurla Complex, Bandra (E), Mumbai‐ 400051.
|
|
|
|
|
Understanding Book Building
|
|
|
| What is book Building ? |
|
|
Book building is a process of price discovery. The issuer discloses a price band or floor price before opening of the
issue of the securities offered. On the basis of the demands received at various price levels within the price band specified
by the issuer, Book Running Lead Manager (BRLM) in close consultation with the issuer arrives at a price at which the security
offered by the issuer, can be issued.
|
|
|
| What is a price band ? |
|
|
The price band is a band of price within which investors can bid. The spread between the floor and the
cap of the price band shall not be more than 20%. The price band can be revised. If revised, the bidding
period shall be extended for a further period of three days, subject to the total bidding period not
exceeding thirteen days.
|
|
|
| How does Book Building work ? |
|
|
Book building is a process of price discovery. A floor price or price band within which the bids can move is disclosed at least two working
days before opening of the issue in case of an IPO and atleast one day before opening of the issue in case of an FPO. The applicants bid for
the shares quoting the price and the quantity that they would like to bid at. After the bidding process is complete, the 'cut-off' price is
arrived at based on the demand of securities. The basis of Allotment is then finalized and allotment/refund is undertaken. The final
prospectus with all the details including the final issue price and the issue size is filed with ROC,
thus completing the issue process. Only the retail investors have the option of bidding at 'cut-off'.
|
|
|
| How does "cut off" option works for investors ? |
|
|
"Cut-off" option is available for only retail individual investors i.e investors who are applying for securities worth up to Rs 1,00,000/- only.
Such investors are required to tick the cut-off option which indicates their willingness to subscribe to shares at any price discovered within
the price band. Unlike price bids (where a specific price is indicated) which can be invalid, if price indicated by applicant is lower than
the price discovered, the cut-off bids always remain valid for the purpose of allotment
|
|
|
| Can I change/revise my bid ? |
|
|
Yes, you can change or revise the quantity or price in the bid using the form for changing/revising
the bid that is available along with the application form. However, the entire process of changing or
revising the bids shall be completed within the date of closure of the issue.
|
|
|
| Can I cancel my Bid ? |
|
|
Yes, you can cancel your bid anytime before the finalization of the basis of allotment by
approaching/ writing/ making an application to the registrar to the issue.
|
|
|
| What proof can I request from a trading member or a syndicate member for entering bids ? |
|
|
The syndicate member returns the counterfoil with the signature, date and stamp of the syndicate member.
You can retain this as a sufficient proof that the bids have been accepted by the trading / syndicate member
for uploading on the terminal.
|
|
|
|
|
|
|
| What is meant by delisting of securities ? |
|
|
The term "delisting" of securities means permanent removal of securities
of a listed company from a stock exchange. As a consequence of delisting,
the securities of that company would no longer be traded at that stock exchange.
|
|
|
| What is the difference between Voluntary delisting and Compulsory delisting ? |
|
|
Compulsory delisting refers to permanent removal of securities of a listed company from a stock exchange
as a penalizing measure at the behest of the stock exchange for not making submissions/comply with various
requirements set out in the Listing agreement within the time frames prescribed. In voluntary delisting,
a listed company decides on its own to permanently remove its securities from a stock exchange.
|
|
|
| What is the exit opportunity available for investors in case a company gets delisted ? |
|
SEBI (DELISTING OF EQUITY SHARES) REGULATIONS, 2009 provide an exit mechanism, whereby the exit price for voluntary delisting of securities
is determined by the promoter of the concerned company which desires to get delisted, in accordance to book building process. The offer
price has a floor price, which is average of 26 weeks average of traded price quoted on the stock exchange where the shares of the
company are most frequently traded preceding 26 weeks from the date public announcement is made. There is no ceiling on the maximum price.
In case of infrequently traded securities, the offer price is as per Regulation 20 (5) of SEBI (Substantial Acquisition and Takeover)
Regulations. For this purpose, infrequently traded securities is determined in the manner as provided in Regulation 20 (5) of SEBI (Substantial
Acquisition and Takeover) Regulations.
|
|
|
| Does a company listed at BSE/NSE have to provide exit offer to shareholders in case it delists from stock exchanges other than BSE and NSE ? |
|
|
No, the company does not have to provide exit offer to shareholders because it continues to be
listed on the BSE / NSE which have nationwide reach and shareholders can exit any time they decide
to so by way of selling shares in NSE/ BSE.
|
|
|
|