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  • Category: Stock Market

    How a private company can be registered to stock market?

    Do you want to know how to register a private company to the stock market? Learn more about the stock market registration process for private companies.

    Here I want to know that how a company can be registered to the stock market so the people can buy the stocks of the company. What is the minimum requirement which a company must fulfill so that it can be registered to the stock market. Please explain me this in brief so that I can understand it well.
  • Answers

    2 Answers found.
  • First of all a Private limited company cannot trade its share on stock exchange.

    When you use the term Private limited it means that the shares of that company are held by few private parties and not by public in general.

    A private company cannot invite general public to subscribe to its shares. To do so it will first have to convert itself to a Public Limited company, then only it can think of getting itself listed on stock exchange for trading its share.

    Listing process on a stock exchange goes through following process:

    1. The applicant company has to forward an application to the designated stock exchange in prescribed format along with supporting documents.

    2. The company has to follow all the laws and bye-laws applicable to it by the stock exchange as well as the laws framed by SEBI (Stock Exchange Control Board of India)

    3. The company on getting consent from the stock exchange has to enter into listing agreement with the exchange under its common seal.

    4. Upon compliance of all the formalities the exchange lists the company and the company now has to follow all the post listing compliance of the exchange.

    The process of listing is a little more technical than explained here for sake of simplicity.

    The process of Initial public offer(IPO) is also related but has not been explained here.

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