Question

Explain the following term/concept in detail:
Listed Company

Answer 1

Where a company’s shares are listed on the Stock Exchanges, additional requirements with respect to Listing agreements must be followed like.

1. Notify the stock exchange where the company’s securities are listed at least 2(two) days in advance of the date of the meeting of the Board at which the recommendation of the final dividend is to be considered.
2. Intimate Stock Exchange immediately about the declaration of the dividend after the Board Meeting.
3. Give notice of Book closure to the stock exchange at least 7(seven) working days before the closure.Close the Register of Members and the Transfer Register.
4. It must use an electronic mode of payment such as Electronic Clearing Services (ECS) or National Electronic Fund Transfer (NEFT); as approved by the Reserve Bank of India (RBI)
5. The listed company has to express the dividend on per-share basis only.