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Public Offer By Small Unlisted Companies (Post Issued Paid-Up Capital upto Rs.5 crores)

Public issues of small ventures which are in operation for not more than two years and whose paid up capital after the issue is greater than 3 crores but less than 5 crores the following guidelines apply

  • Can list their securities only in exchanges where trading of securities is screen based
  • If the paid up capital is less than 3 crores then they can only be listed on the Over the Counter Exchange of India (OTCEI)
  • Appointment of market makers mandatory on all the stock exchanges where the securities are proposed to be listed
The appointment of market makers shall be subject to the following:-
  • each market maker should offer a continuous two-way quote for a minimum period of 18 months from the date on which the securities are admitted for dealing.
  • buy and sell quotes offered by the market maker shall be with a minimum depth of 3 marketable lots;
  • bid-ask spread (difference between quotations for sale and purchase) shall not at any time exceed 10%;
  • market maker should have at least 5% of the post-issued capital of the company as inventory.
    • Appoint an additional market maker for a minimum period of 12 months from the date of allotment of the securities/ on which the securities are admitted for dealing on all the stock exchanges where the securities are listed/proposed to be listed and the appointment of each such additional market maker shall be subject to the conditions specified above.


     

More about the OTCEI
Listing requirements for IPO through OTCEI
Addresses of OTCEI offices throughout the country
 
Back to SEBI Guidelines for IPOs

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