BSE LISTING FEE INCREASED FROM 01.01.2016

A sudden steep rise in listing fee by BSE has taken aback the companies looking to migrate from regional stock exchanges (RSEs), and their shareholders. Last week, BSE wrote to several companies that had already applied for direct listing, saying the processing fee for direct listing was revised with immediate effect to Rs 25 lakh. And, from January 1, further to Rs 50 lakh. In comparison, the processing fee of rivals Metropolitan Stock Exchange of India (MSEI) and National Stock Exchange (NSE) is Rs 3.5 lakh and Rs 1 lakh, respectively. In an e-mail, responding to questions from this newspaper, a BSE spokesperson said they’d listed many more companies as compared to both rivals but had begun to have reservations about the quality of companies coming out of these regional bourses. Of 244 such companies listed on BSE, eight have since been suspended and a little over half are under investigation. Approximately 30 per cent have issued preferential shares and a little over 15 per cent have seen their stock prices increase by about 500 per cent since their direct listing on BSE. The total market cap of these companies increased by Rs 4,930 crore. “Given the heightened surveillance activities to avoid manipulative and tax avoidance practices using stock markets, Sebi (the Securities and Exchange Board of India) and other agencies have raised several questions on the lack of...

Read More