While trading, knowing where your funds are being used and the amount you have available for trading is of utmost importance. The total of funds that are available to trade on a particular day, and the margin against eligible holdings (if the user has pledged the shares) is known as the Available Limit. In some cases, under the Available Limit section, you can also see the used margin. This used margin means your funds are utilised for your intraday trades, carry forward positions, or you have open orders that are not yet executed.
Key Takeaways
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Companies can list on BSE through an IPO, FPO or direct listing.
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Each listing route has its own eligibility rules set by BSE.
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Firms must complete allotment and trading steps within BSE’s timelines.
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Listing on BSE offers benefits such as liquidity, transparency and better capital access.
Just as the NSE (National Stock Exchange) has its listing requirements, the BSE (Bombay Stock Exchange) has also laid out specific requirements for a company to get listed. When a company gets listed on the BSE, it can enjoy various benefits such as:
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Brings in liquidity and ready marketability of securities
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Increases the company’s ability to raise capital
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Supervises and monitors the trading of securities
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Generates a fair price for the company’s security
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Provides more transparency about the company’s activities and thus gains investors’ confidence
Ways of Listing
There are two broad ways through which a company can get listed on the BSE:
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New Listing (IPO/FPO)
An IPO is a process by which a company offers its shares to the public for the first time. FPO is the process by which a company already listed on the stock exchange issues new shares to existing shareholders or new investors.
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Direct Listing
The process by which a company already listed on any other stock exchange(s) approaches BSE to get its shares listed is known as Direct Listing. Currently, a direct listing is divided into the following subcategories.
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Companies listed on the nationwide Stock Exchange having an average daily turnover of more than ₹ 500 crore in the equity segment in the immediate preceding Financial Year, seeking listing under Direct Listing at BSE.
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Companies listed on recognised stock exchange / nationwide stock exchange having average daily turnover less than ₹500 crore in equity segment in the immediate preceding Financial Year/ Companies which are on Dissemination Board of the Exchanges having nationwide terminals.
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Companies listed on the SME platform of other stock exchanges and seeking listing at BSE under Direct Listing at the same time as migrating to the Main Board at that stock exchange.
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Companies listed on other Nationwide Stock Exchanges, which were initially listed on the SME platform and seeking listing at BSE under Direct Listing.
Please note that each of the ways mentioned above has its own eligibility criteria that a company must fulfil to enjoy the listing benefits.
Here’s a look at the stats for IPO listing through BSE for the past 5 years. This will help you understand how more and more companies have started listing themselves on the BSE through IPOs.
|
Year |
Total IPOs |
IPOs on BSE Main Board |
IPOs on BSE SME Segment |
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2025 |
221 |
94 |
127 |
|
2024 |
158 |
90 |
68 |
|
2023 |
120 |
59 |
61 |
|
2022 |
90 |
38 |
52 |
|
2020 |
91 |
64 |
27 |
Benefits of BSE Listing
A BSE listing offers several important advantages that help a company grow and build investor confidence.
Liquidity and Market Access
A BSE listing makes a company’s shares readily available for trading on a recognized national exchange. This improves the marketability and liquidity of the stock, enabling investors to enter or exit positions with ease and speed. High liquidity is crucial as it attracts a broader base of investors, including large domestic institutions and Foreign Institutional Investors (FIIs), thereby securing the company's place in the wider financial ecosystem and ensuring effective price discovery.
Better Fund-Raising Opportunities
Listing grants the company direct and continuous access to a deep pool of public capital. Once listed, the company can strategically raise substantial fresh capital through various mechanisms like Follow-on Public Offers (FPOs), Rights Issues, or Qualified Institutional Placements (QIPs), The proceeds from these issuances can be strategically deployed to fund ambitious growth and expansion plans, invest in essential research and development (R&D), or significantly reduce existing, high-interest debt obligations, thereby strengthening the balance sheet and ensuring long-term financial stability.
Stronger Regulation and Transparency
By listing the BSE, a company voluntarily subjects itself to stringent oversight by the exchange and the market regulator (SEBI). This commitment necessitates strict compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR). Adherence to these rules—which govern timely financial disclosures, corporate governance standards (like having independent directors and audit committees), and investor grievance redressal—ensures fair and transparent trading. This regulatory discipline builds profound trust among all stakeholders, elevates the company's reputation, and ultimately strengthens its overall credibility in the marketplace.
BSE Listing Requirements
BSE Listing Requirements for New Listing Through IPO/FPO
Companies seeking to go public through an Initial Public Offering (IPO) or a Further Public Offering (FPO) must adhere to a detailed set of regulations laid down by the Bombay Stock Exchange (BSE) and the Securities and Exchange Board of India (SEBI).
Market Capitalisation: The minimum post-issue paid-up capital of the company must meet the exchange's criteria, which is calculated as: *Market capitalisation = post-issue paid-up number of equity shares * issue price
Other important requirements that a company needs to fulfil:
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Exchange Name Usage Permission: The company must secure express written permission from the BSE to use its official name in the company's prospectus, ensuring the public document is accurate and authorized before being filed with the Registrar of Companies (ROC).
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Submission of Letter of Application: A formal Letter of Application for Listing must be submitted to all designated stock exchanges where the company intends to list its securities (e.g., BSE and NSE) prior to the filing of the draft prospectus with SEBI. This initiates the formal listing approval process.
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Timely Share Allotment: The company is mandated to complete the entire share allotment process to subscribers within 30 days of the public subscription closure date. For book-building issues, this timeline is accelerated to 15 days, ensuring investor capital is not blocked unnecessarily.
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Completion of Trading Formalities: Within 7 days from the finalization of the basis of allotment, the company must complete all necessary steps—including dematerialization and crediting of shares to investor accounts—to enable the commencement of trading on all stock exchanges where the company has applied for listing.
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Security Deposit with Exchange: The company is required to deposit an amount equivalent to 1% of the total issue amount with the designated stock exchange (BSE) before the public issue opens. This deposit acts as a security measure to cover potential investor claims arising from the issue and is typically refunded after the listing process is complete, provided no default occurs.
BSE Listing Requirements for Direct Listing
Financial Requirements
Operating Profit Track Record: A cumulative operating profit of at least ₹15 crores over the last 3 financial years. A minimum operating profit of ₹10 crores in each of those three years.
Net Tangible Assets: The company must maintain Net Tangible Assets of at least ₹3 crores in each of the last 3 financial years.
Issued & Paid-up Capital: There must be a minimum issued, fully paid-up, and listed equity capital of at least ₹3 crores.
Shareholding and Liquidity
Public Shareholders: A company must have at least 1,000 public shareholders on the date it applies for a direct listing. This is an enhanced requirement to ensure broader public participation.
Public Shareholding: The company must strictly adhere to the SEBI-mandated minimum public shareholding, typically 25% for the Main Board.
Market Liquidity: The company's shares must have traded on at least 80% of the days in the preceding 6 months. Additionally, the trading volume must involve at least 5% of the weighted average number of listed equity shares during those 6 months.
Compliance and Corporate Status
Listing Track Record: The company must already be listed on another recognised stock exchange.
Compliance History: A clean compliance track record for 3 years preceding the application date is mandatory.
Promoter Holding: The Promoter/Promoter Group must collectively hold at least 25% of the equity shares, and this entire holding must be in dematerialised form.
Capital Change Restriction: Generally, there should be no change in equity share capital in the 1 year before the application date, with limited exceptions.
Legal Standing: The company must have no pending winding-up petition admitted by the NCLT and should not be under any IBC proceedings.
Regulatory Status: Neither the company, its promoters, nor its directors should be currently debarred from accessing the capital market by SEBI.
Conclusion
To get listed, a company must complete all BSE requirements, including proper documentation, fee payment, and adherence to trading rules. Once successfully listed, investors can freely trade the company’s securities, and the company gains access to new capital for expansion, research, or debt reduction.
So, a BSE listing is a key milestone for companies. It not only opens doors to financial opportunities but also strengthens credibility, governance, and investor confidence, making it a vital tool for growth in India’s dynamic business environment.
Disclaimer: This blog is exclusively for educational purposes.
