Listed securities are financial instruments that are traded on a recognized stock exchange, such as the NSE or BSE in India. These include equities, bonds, debentures, exchange-traded funds (ETFs), and other marketable instruments approved by the exchange. When a companyís securities are listed, they become available for public trading under strict regulatory oversight, ensuring transparency, investor protection, and market efficiency.
The listing process involves a company meeting specific eligibility criteria set by the stock exchange, such as minimum capital, profitability track record, and corporate governance standards. Once approved, the companyís shares are assigned a unique ticker symbol and can be freely bought and sold by investors during trading hours. This public listing enhances a companyís visibility, credibility, and access to capital from a broad investor base.
For investors, listed securities provide liquidity, as they can be easily traded in the open market. The availability of real-time price data and regulatory disclosures also allows investors to make informed decisions. Moreover, listed securities are regulated by bodies such as the Securities and Exchange Board of India (SEBI), which mandates periodic reporting and compliance to ensure fair practices.
In contrast, unlisted securities are traded privately and lack the same level of transparency and liquidity. Therefore, listed securities are often preferred by investors seeking regulated, transparent, and liquid investment opportunities. They play a vital role in the economy by enabling efficient capital formation and facilitating participation from institutional and retail investors alike.
In summary, listed securities form the backbone of organized financial markets, fostering investor confidence and supporting long-term economic growth through regulated and transparent trading mechanisms.
Easy & quick