LISTING

Listing is a system of accepting securities issued by companies or the government, which are allowed to trade through the facilities of the Royal Securities Exchange of Bhutan. Clearly, securities have to be introduced to the exchange before it can be in the market. The purpose of listing is threefold. In the first place the exchange wishes to ensure that the investor has an adequate knowledge of the history and purpose of the company. The investor needs to know why the company seeks his cash and needs to be able to judge whether his investment is likely to be profitable. As part of this process the exchange will wish to ensure that the company meets company law requirements and any additional disclosure requirements that the exchange feels necessary to impose. The exchange will also wish to ensure that an adequate number of shares are being offered publicly to ensure a continuing market in the shares. The second purpose of listing is to establish a contractual relationship between the exchange and the company as the company is seeking the benefits of the market. In return the company has a duty, best expressed by contract, to the market. The main duty of the company is a continuous and speedy disclosure to the market of events in the life of the company, which could affect the price of its shares. Finally, the contractual arrangement will permit the exchange to seek information from a company when the market sees an unusual movement in prices and there is fear of a false market development. The tool in the hands of the exchange would be the suspension of dealings until it was satisfied that the market was operating with full and equal information. Incidentally, a suspension of trading is a beneficial market tool as well as a means of discipline. Government securities would be a different case. The government or the central bank would be the issuers and it would be for the exchange to agree the appropriate prospectus and trading and settlement arrangements with the authority concerned. But appropriate investor protection would still be the responsibility of the exchange. For further information, please refer the Rules Governing the Official Listing of Securities under Rules & Regulations.

LISTING FEES

  1. Initial Listing Fee

    1. In the case of an issue of equity securities by a new applicant, an initial listing fee of Nu.250,000/- shall be payable on the application for listing.
    2. In the case of an issue of debt securities by a new applicant, an initial listing fee of Nu.250,000/- shall be payable on the application for listing.
    3. A new applicant shall pay the initial listing fee, in advance, at the same time as it submits its formal letter of application in accordance with rule 4.03(4)

  2. Annual Listing Fee

    1. In addition to the initial listing fee, an annual listing fee based on the Issuer's Paid Up Capital at the following progressive range:
      1. Nu. 15,000 per annum for paid up capital up to Nu. 5 million as Quoting Fee
      2. Nu. 22,500 per annum for paid up capital up to Nu. 10 million
      3. Nu. 30,000 per annum for paid up capital up to Nu. 20 million
      4. Nu. 37,000 per annum for paid up capital up to Nu. 50 million
      5. Nu. 45,000 per annum for paid up capital above Nu. 50 million.
    2. The RMA shall pay the Exchange an annual fee of Nu.2500,000/- for the listing of RMA Bills on the Exchange. The RSEB may however revise the fee once every 3 years.
    3. Annual Listing fees shall be payable during the month of January every year.
    4. Annual listing fees for Bond shall be charged based on the maturity period as indicated below.
      1. Maturity period up to one year Nu. 37,500 per annum
      2. Maturity period up to five years Nu. 30,000 per annum
      3. Maturity period up to ten years Nu. 22,500 per annum
      4. Maturity period for more than ten years Nu. 15,000 per annum

  3. Subsequent Issue Fee

    1. Where a listed issuer makes a subsequent issue of equity securities, a subsequent issue fee of Nu.15,000/- shall be charged.
    2. This charge does apply to the issue of securities on the exercise of options, warrants or conversion rights under convertible securities, the grant or issue of which have been approved by the Exchange, or to a capitalisation issue including the issue of securities under a scrip dividend scheme