What is a Listed Company?

A listed company, also known as a publicly traded company, is one whose shares are traded on a stock exchange. These companies have fulfilled the regulatory requirements imposed by the Securities and Exchange Board of India (SEBI) and other regulatory bodies, and have undergone the process of listing their shares on a recognized stock exchange, such as the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE). The requirements include periodic financial reporting, disclosure of material information, and adherence to corporate governance norms.

Features of Listed Company:

• Publicly Traded Shares: Listed Companies have shares that are traded on a recognized stock exchange, allowing the general public to buy and sell them.
• Regulatory Compliance: They are subject to regulatory requirements imposed by securities regulators and stock exchanges, such as filing periodic financial reports and complying with corporate governance standards.
• Access to Capital: Listed Companies have access to a wider pool of capital through the issuance of equity shares to investors in the primary market and subsequent trading in the secondary market.
• Increased Visibility: Being listed on a stock exchange provides greater visibility and credibility to the company among investors, analysts, and the general public.
• Market Valuation: Listed Companies are subject to market valuation based on the demand and supply dynamics of their shares, which can influence their perceived value and attractiveness to investors.

Listed and unlisted companies refer to the status of a company’s shares concerning a stock exchange. A listed company is one whose shares are traded on a stock exchange. An unlisted company is one whose shares are not traded on a public stock exchange.