Big Cap Company Essay

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CHAPTER-4 CLAUSE 49 OF LISTING AGREEMENT Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society. 1.1 LISTING AGREEMENT Listing of Securities: Listing generally means admitting of securities for dealings on specified stock exchanges such as National Stock Exchange, Bombay Stock Exchange etc. These securities may be of a central/state government, public limited company, quasi governmental and other financial institutions …show more content…

large cap companies and small cap companies. A large cap company is a company with a minimum issue size of Rs. 10 crore and market capitalization of not less than Rs. 25 crore. A small cap company is a company other than a large cap company.In respect of Large Cap Companies, the minimum post-issue paid-up capital of the applicant company shall be Rs. 3 crore and the minimum issue size shall be Rs. 10 crore and the minimum market capitalization of the Company shall be Rs. 25 crore. Market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price. In respect of Small Cap Companies, the minimum post-issue paid-up capital of the Company shall be Rs. 3 crore. The minimum issue size shall be Rs. 3 crore and the minimum market capitalization of the Company shall be Rs. 5 crore. Market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price and the minimum income/turnover of the Company shall be Rs. 3 crore in each of the preceding three 12-months period and the minimum number of public shareholders after the issue shall be 1000. A due diligence study may be conducted by an independent team of Chartered Accountants or

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