Ref : SE/2936
April 6, 1992
To,
The Presidents/Executive Directors
All Stock Exchanges.
Dear Sir,
1% Listing Deposit
You would recall that SEBI had made a proposal that the companies entering the capital market should deposit with the Stock Exchange a small percentage of the public offer which would be refunded to the company without interest within 15 days from the expiry of the prescribed period and the deposit would be forfeited if the company failed to comply with the listing requirements including repayment of funds due to applicants, despatch of share certificates, payment of brokerage, underwriting commission etc., within the prescribed period. In the case an issue is likely to be listed on more than one Stock Exchange, then the requisite amount should be deposited with the regional Stock Exchange i.e., the Stock Exchange which is situated nearest to the registered office of the company and where listing of its securities is compulsory.
The above suggestion has been implemented by the Bombay Stock Exchange by suitably amending the Listing Agreement as also the relevant Regulations of the Exchange so as to provide for collection of such deposit from the companies. Bombay Stock Exchange has decided to collect from the companies an amount equivalent to one per cent of the amount offered for subscription to the public and /or to the shareholders of the existing securities for ensuring compliance with the above requirements. A copy of the press release dated March 17, 1992 issued by the Bombay Stock Exchange, the contents of which are self-explanatory, is enclosed for your information and perusal.
You are advised to introduce necessary measures urgently to implement the scheme on the lines of the Bombay Stock Exchange by making suitable amendments to the Listing Agreement to be entered into by your Exchange with the companies and relevant Bye-laws and Regulations of your Exchange at an early date.
The steps taken in this regard may please be advised to us by a separate communication.
Meanwhile, please acknowledge receipt of this letter.
Yours faithfully,
sd/-
(U. C. Dikshit)
ADVISER