According to various sources, listed companies are incorporated and traded on a particular stock exchange. There are various conditions on a stock exchange that a company must meet and be listed and maintained. A private company is required to go public to sell its shares to the public; Once it goes public they are registered with a stock exchange.

 The reason companies go public is that they can reduce their debt and banks also have the means to repay themselves in addition to debt. A public company does not always need to be listed. A listed public company is a stock that is not listed on the stock exchange, but can have an unlimited number of partners to raise capital for any commercial business.


A company cannot be registered for many reasons, such as-

   Stock exchange is not big enough to list. List of very few partners. The public is not looking for investors


What is a listed company?

   A company whose shares are traded on the government stock exchange will certainly meet the requirement of a list of exchanges that may include how many shares are listed and the minimum income level.


What is a listed company?

   These are companies that are not listed on the stock exchange, so they are privately owned. Since they are not on the list, they do not have the opportunity to raise funds. They are going to be investors. Shares are traded "over the counter", where the terms of the contract can be determined as required by the parties (buyers and sellers) is; Therefore, control exchanges are avoided. Listed companies have good control over their business operations.

   Some questions that come to mind - can a listed company offer shares in a private placement? What is the responsibility of the director in such a case? What if the shares of these companies are not listed on the stock exchange? Is there a way for the investors of this company?

   The question whether a small number of people share or offer to share a small number of people will depend on the facts and circumstances of each case.


Important things to remember are:

   When such an offer is accepted as a public offer, it must meet all applicable service requirements in the case of an initial public offer. This company will be required to follow the rules applicable to compulsory companies, not listed on a priority basis.

   Listed Public Companies Rules (Priority Distribution), 2003. These rules apply to all listed public companies, share-preferred issuers (private placements), fully convertible bonds, partially convertible bonds or any other financial instrument that is subject to change or equity securities. Publicly listed companies should disclose specific provisions under that rule


Investor Rights

   Potential investors have the right to request a public company that is not listed on the stock exchange, an informative note containing the highlights of the proposed private placement that the company must provide.

   Investors should keep in mind that purchasing shares awarded by a listed public company through a private placement with a listed listing does not mean that the shares will be automatically included in the list.

   Nor does it mean that the stock exchange will be forced to quote such share.s A listed company should meet the requirements of SEBI and make an Initial Public Offer (IPO).

   Therefore, the promise to bid later will depend on several factors. In addition, it is possible that the company did not make a written commitment to the shares listed on any recognized stock exchange. Any investment in equity is still risky, which varies for various reasons.

   Directors of a listed public company who have participated in a private placement have an additional obligation if they follow the company's privacy rules at the time of the individual placement. Will not accept

   However, if the individual placement offer is misleading or if the directors have defrauded the investors, they can be held personally liable. However, investors should keep in mind that although the directors of listed companies have promised that such shares will be listed and such a list will not take place, even if legal action can be taken against them, it will be difficult to take effective action. If the shares are not on the list, then there is no way for the investors and if they want to sell the shares, they have to wait for the people who sold those shares.


 The main differences between listed and listed companies

   There are two main types of companies that are not listed and not listed while profit growth is the main goal of both, there are many differences between listed and listed companies based on the size, structure and method of capitalization.

   The main difference between a listed company and a listed company is its ownership; Listed companies are owned by several partners while listed companies are owned by private investors.

   Decisions of companies are made by a board of directors appointed by partners, which includes executive and non-executive directors. Board compositions are often specified specific and administered by various corporate governance requirements.

   Some important decisions need to be taken. Partners are entitled to two types of returns by investing in a listed company. They are:


1. Dividend

   The company pays its shareholders as much money as they can on their profits Some shareholders prefer to reinvest dividends, while others prefer to reinvest the right money in business, a so-called concept of dividend reinvestment.


2. Capital gains

   Investment is profit from the sale of this investment. It is not mandatory for a company to appear on the list to be successful. Like listed companies, the publication requirement for financial results is not strictly regulated, so they are flexible and less complex.


3. Recent developments

   Corporate tax cuts were introduced in the budget which would be beneficial for listed companies. More than 2,700 companies listed on the Bombay Stock Exchange (BSE) are now expected to make 30% of their income from the proposed budget of 2018. Analysts have given their approval to the development and hope that the surpluses produced will help generate employment. It is assumed that a large proportion of MSMEs will benefit from a cut in corporate tax rates.

   The focus on "rural development and man aam aadmi" was primarily expected, but the announcement of new price formulas and MSP and the imposition of LTCG tax on equity is a negative surprise. On the other hand, Nomura Indian economist Sonal Bharma said in a note that the company's tax cuts, commitment to medium-term financial consolidation and sustainable spending on infrastructure are positive aspects.

   Amar Ambani Bish, a partner and head of research at IIFL, believes the move will be beneficial for many non-bank financial companies and the State Finance Council (SFB), which focus on small business finance.  The budget requires the agriculture sector and MSMEs through which to create an inclusive development agenda, economize and generate employment. "

   For companies limited to MSMEs, FM has made a big contribution for another year, promising to reduce the corporate tax rate from 30% to 25%, however, with a turnover of up to 2.5 billion, 99% MSMEs will be reduced . Rate, according to a note from Deloitte India.


The conclusion

   Legally, in the case of a listed public company, such share does not have to be resigned from the promoter or the person. These shares can be sold to anyone, but it is usually difficult to find buyers for unlisted shares. The legal position is that the person who buys such a share, can make the same transfer in the register of the company on his own behalf, which has no objection to the company or the company. Of course, sellers and buyers need to respect general compliance, such as appropriate transfer documents, transfer stamp printing, and so on. Finally, it is safe to say that investors are reluctant to move away from listed companies.

 Investors on the stock exchange will be prohibited from investing in shares or mandated actions offered by a publicly listed company unless the promoters are personally known. Otherwise, investors will risk acquiring a share that may be difficult to sell at a discount.