Q.What is meant by 'listing of securities'? State any four benefits of listing to a company.

Listing is what formally opens the door for a company's securities to be traded on an exchange, and it brings real advantages to the company itself.

Meaning. Listing is the process by which a company's securities are formally admitted for trading on a recognised stock exchange, after the company enters into a Listing Agreement with that exchange and satisfies its eligibility conditions (minimum paid-up capital, minimum public shareholding, disclosure standards, and so on, prescribed under SEBI's listing regulations). Only a listed security can be bought and sold on the exchange's trading system.

Benefits of listing to a company (any four):

1. Easier access to further capital — because investors know a ready exit route exists, a listed company finds it easier to raise fresh capital through future issues.
2. Enhanced reputation and visibility — listing raises the company's public profile and credibility with banks, suppliers, customers and prospective employees.
3. A continuously available market valuation — the traded market price gives an objective, up-to-date measure of the company's worth, useful to lenders and for corporate transactions such as mergers. …

Answering only about benefits to investors when the question specifically asks about benefits to the company — keep the two sets o …