WHAT IS PROCEDURE TO ISSUE THE SHARES AND ITS STATE PURCHASE?
hen a company needs to increase its capital in other words when a company needs
investment for its special projects or to vast its business, then company issues the shares. Issuing shares means getting investment from public in order to increase capital. Before a company issues its shares, it must be registered in stock exchange and must fulfill the requirements of stock exchange and those requirements are: 1. Application for listing as per Form-I 2. An undertaking as per Form-II 3. Undertaking as per annexure to Form-III pertaining to issue of security, computerized transfer deeds, verification of signatures on transfer deeds. 4. Memorandum & articles of association 5. Copy of certificate of incorporation 6. Copy of certificate of commencement of business 7. Copy of authorization for floatation of Modaraba by the registrar of Modaraba companies 8. 15 copies of draft prospectus/ offer for sale document 9. Detailed particulars of security for which listing is sought 10. Copy of approval of prospectus/ offer for sale document from SECP (to be submitted after clearance of prospectus/ offer for sale by SECP) 11. Copies of prospectus issued by the company in respect of any security already listed on any stock exchange 12. Copy of the feasibility report, in case of new project 13. A brief history of the company since incorporation giving details of its activities including any re-organization , changes in its capital structure and borrowings 14. Statement showing the cost of project and means of finance 15. Name of directors along with directorship of other companies listed on the exchange
16. Name and addresses of the directors and persons holding ten percent or more of any class of equity security as on the date of application together with the number of shares or debentures held by each. 17. Auditors certificate for amount subscribed by the promoters/ directors/ associates 18. Copies of balance sheets and audited accounts for the last five completed years or for a shorter number of years if the company has been in existence only for such years. 19. A statement showing dividends and cash bonuses paid during the last 10 years or such shorter period as the company may have been in existence. A statement showing dividends or interest in arrears, if any 20. Copy of underwriting agreements (if any) and no objection certificates from the underwriters to publish the prospectus 21. Certified copies of agreement with: a) Managing Agents 22. Copies of the content letters from Bankers to the issue 23. Copies of the agreement relating to issue of securities for consideration other than cash, if any 24. Copies of permission for setting up the industrial units 25. Copies of the title deeds of the land 26. A statement containing particulars, dates and parties to all material contracts, agreements (including agreement for technical advice and collaboration), concessions and similar other documents except those entered into in the normal course of the company’s business or intended business together with a brief description of the terms of such agreements. 27. Certified copies of the agreements with NIT, ICP, PICIC, IDBP and any other financial institution. 28. Copies of all material contracts and agreements entered into or exchange with foreign participants, machinery suppliers and any other financial institutions. 29. Copies of letters of credit established in favour of machinery suppliers, if linked with public issue 30. Documents to be submitted in compliance with the companies (issue of capital) rules, 1996 b) Selling Agents c) Managing Directors
After fulfilling these upper given requirements of stock exchange, registrar of stock exchange approves this and then the company is listed in the stock exchange and is now allowed to issue the shares. Company lets public know about their share through the newspaper advertisement. People who are interested they get...
References: *1 http://www.sbp.org.pk/about/core_functions/index.htm *2, *3, *4 http://www.google.com.pk/url?sa=t&source=web&cd=1&ved=0CBgQFjAA&url=http%3A%2F%2Fwww.sbp. org.pk%2Fabout%2Fact%2FAnti-Act2010.pdf&ei=Rx4STrnKBYuMswaFxcnyDg&usg=AFQjCNGlrULIxkQ5nQOh48IVby6WjcgEGA
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