InvestorQ : What are the criteria for listing for existing companies?
Rashi Mehra made post

What are the criteria for listing for existing companies?

Dhwani Mehta answered.
2 years ago

For Securities of Existing Companies some of the key considerations for listing are as under:

Net Worth

The net worth of the applicant company shall be more than 100 crores* in each of the three preceding financial years. The Company shall submit a certificate from the statutory auditors in respect of net worth as stipulated above.

The applicant company shall have adhered to conditions precedent to listing as emerging from inter-alia, Securities Contracts (Regulations) Act 1956, Companies Act 1956, Securities and Exchange Board of India Act 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.


The company should have a full time Company Secretary.

At least three years track record of either:

The applicant company seeking listing; or

The promoters****/promoting company, incorporated in or outside India


For this purpose, the applicant company or the promoting company shall submit annual reports of three preceding financial years to NSE and also provide a certificate to the Exchange in respect of the following:

The company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR)

The net worth of the company has not been wiped out by the accumulated losses resulting in a negative net worth.

The company has not received any winding up petition admitted by a court.

**** Promoters mean one or more persons with minimum 3 years of experience of each of them in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally.

The applicant company should have been listed on any other recognized Stock Exchange Listed for at least last three years or listed on the exchange having nationwide trading terminals for at least one year.

Minimum average daily turnover during last 6 months (value) - Rs. 10 lakhs

Minimum average daily number of trades during last 6 months (count) – 50

Cooling period of two months from the date the security has come out of trade-to-trade category on other exchanges where the security has been actively listed.

Securities of the company should be trading above face value during six months preceding the date of application.

The applicant company has paid dividend in at least 2 out of last 3 financial years immediately preceding the year in which listing application has been made

The applicant company desirous of listing its securities should also satisfy the Exchange on the following:

No Disciplinary action has been taken 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(ies) 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.

Redressal mechanism of Investor grievance

The points of consideration are:

The applicant company, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) track record in redressal of investor grievances

The applicant’s arrangements envisaged are in place for servicing its investor

The applicant company, promoters’/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) general approach and philosophy to the issue of investor service and protection

Defaults in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders by the applicant company, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) shall also be considered while evaluating a company’s application for listing. The auditor’s certificate shall also be obtained in this regard. In case of defaults in such payments, the securities of the applicant company may not be listed till such time it has cleared all pending obligations relating to the payment of interest and/or principal.

Mandatory SEBI registered SCORES ID. Pending investor grievance should not be more than 30 days.

Distribution of shareholding

The applicant company/promoting company(ies) shareholding pattern on March 31 of preceding three years separately showing promoters and other groups’ shareholding pattern should be as per the regulatory requirements. Total number of public shareholders on the date of application should be at least 1000.

Details of Litigation

The applicant company, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) litigation record, the nature of litigation, status of litigation during the preceding three years need to be clarified to the exchange.

Track Record of Director(s) of the Company

In respect of the track record of the directors, relevant disclosures may be insisted upon in the offer document regarding the status of criminal cases filed or nature of the investigation being undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes.

Change in Control of a Company/Utilisation of funds raised from public

In the event of new promoters taking over listed companies which results in change in management and/or companies utilising the funds raised through public issue for the purposes other than those mentioned in the offer document, such companies shall make additional disclosures (as required by the Exchange) with regard to change in control of a company and utilisation of funds raised from public.

Withdrawal\rejection cooling off period

The application of the applicant company should not have been rejected in last 6 months.

Company Website

The applicant company should mandatorily have functional and updated website.

Audit qualification

The applicant company should not have audit qualification w.r.t. going concern and adverse opinion or disclaimer of opinion pertaining to financials.


Where an unlisted company merges with a company listed on other stock exchanges and the merged entity seeks listing on the NSE, the Exchange may grant listing to the merged entity only if the listed company (prior to the merger with the unlisted company) meets all the criteria for listing on its own account or the unlisted company meets the requirements for listing on the Exchange, except for the market capitalisation condition, on its own account. In case either of the above conditions are not met then such company may be considered for listing after a minimum period of 18 months or more or after the publication of two annual reports whichever is later, provided it satisfies the criteria at that point of time.

The eligibility criteria shall not be applicable to State or Central Public Sector Undertakings (PSU) including PSU Banks.

Kindly note that the application submitted to the Exchange for listing does not construe NSE's listing approval. The company shall use NSE’s reference regarding listing only after the Exchange grants listing approval to the company.

The above criteria are applicable w.e.f March 10, 2017.