What is the process to register a company in NSE and BSE?

Registering a company on NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) involves meeting eligibility criteria, submitting necessary documents, and getting approvals from regulatory authorities like SEBI.

1. Eligibility Requirements for NSE & BSE Listing

A company must meet certain criteria before applying for NSE and BSE listing:

• Minimum Net Worth: The company must have a minimum net worth as per exchange requirements.
• Profitability Track Record: At least 3 years of positive net profits.
• Minimum Paid-up Capital: ₹10 crore for NSE & BSE Mainboard, ₹3 crore for SME Exchange.
• Corporate Governance Compliance: Must follow SEBI’s corporate governance guidelines.

2. Steps to Register a Company on NSE & BSE

Here’s the process to get a company listed:

1. Appoint a Merchant Banker: A SEBI-registered merchant banker will assist in the listing process.
2. Prepare Draft Red Herring Prospectus (DRHP): The DRHP includes financial details, company history, and business prospects.
3. Submit Application to Exchange: Apply for listing with NSE/BSE and pay the listing fees.
4. Regulatory Approval & SEBI Clearance: SEBI reviews the application for compliance.
5. Initial Public Offering (IPO) Process: After approval, the company issues shares to the public.
6. Listing & Trading: Once the IPO is completed, the company gets listed, and shares start trading on the exchange.

3. Documents Required for NSE & BSE Listing

To apply for NSE or BSE listing, the company must submit:

• Company’s Financial Statements: Last 3 years' audited financial reports.
• Draft Red Herring Prospectus (DRHP): SEBI-approved IPO document.
• Articles of Association & Memorandum of Association: Legal company formation documents.
• Board Resolutions & Business Plan: Approved by directors for listing purposes.

4. Cost & Time for NSE/BSE Listing

The cost and time taken for listing depend on company size and exchange requirements:

• Cost: ₹10-50 lakh for SME listing, ₹5-10 crore for mainboard listing.
• Time Taken: 3 to 6 months from application to final listing.

Conclusion

Listing a company on NSE and BSE increases credibility and provides access to investors. By meeting the eligibility criteria, preparing necessary documents, and following the listing process, businesses can successfully enter the stock market.