To get listed in a stock exchange, the company should have issued for public subscription at least the minimum prescribed percentage of its share capital (49 percent).

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A True
To get listed in a stock exchange, the company should have issued for public subscription at least the minimum prescribed percentage of its share capital(49%) - this is a true statement. Allotment of shares is done on a fair and reasonable manner. In order to get listed, the company must comply with certain terms and conditions. Basic function of stock exchange are providing Liquidity and Marketability to existing securities.

Suggest Corrections

Similar questions

Q. A company which desires to list its securities in a stock exchange, should offer at least _____ percent of its issued capital for public subscription.

Is it necessary for a public company to get its share listed on a stock exchange? What happens if a public company going for a public issue fails to apply to a stock exchange for permission to deal in its securities or fails to get such permission ?

The directors of a company want to modernise its plant and machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for a new public issue of shares. Advise the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

Q. The Directors of a Company want to modernise its plants and machinery by making a public issue of shares. They wish to approach stock exchange. While the finance manager prefers to approach a consultant for the new public issue of shares. Advise the directors whether to approach stock exchange or consultant for the new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

The director of a newly established company having paid up equity share capital of 25 crores desires to get its shares traded at all India Level Stock exchange. As finance manager of the company. Suggest the name of stock exchange for the purpose. Give any 3 reasons in support of your answer.

Join BYJU'S Learning Program