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Give the rules for floatation of new shares on NSE.

Give the rules for floatation of new shares on NSE.

Answers

Kavungya
1. The company must have an issued share capital of at least Kshs.20 M.
2. The company must have made profits during the last 3 years.
3. At least 20% of issued capital (capital to be issued) should be offered to the public
4. The firm must issue a prospectus which will give more information to investors to enable them to make informed judgement
5. The market price of the companies share must be determined by the market forces of demand and supply
6. The company should be registered under Cap. 486 with registrar of companies.
Kavungya answered the question on March 12, 2019 at 05:51

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