What is an annual listing fee?

Every listed company are required to pay an annual listing fee which shall be calculated by reference to the nominal value of the securities which are or are to be listed on the Exchange.

This annual listing fee is payable in advance in one installment.

Calculation of annual listing fee:

Nominal value of Listed Equity Securities (HK$ million) Annual listing fees
Not exceeding: 200 145000
300 172000
400 198000
500 224000
750 290000
1000 356000
1500 449000
2000 541000
2500 634000
3000 726000
4000 898000
5000 1069000
Over 5000 1188000

NSE and BSE both vide Circular Ref No: NSE/CML/2020/53 and notice no. 20201106-39 dated 06.11.2020, respectively has issued circular stating Action(s) to be initiated against listed companies for non-payment of outstanding Annual Listing Fees (“ALF”) for Financial Year 2020-21.

This Circular has been issued to:

  • The Company Secretary/Compliance Officer

(To all Companies who have not paid Annual Listing Fees)

The following action shall be taken if a listed company (being Defaulted Company) fail to pay the outstanding ALF (including the listing fee for Financial Year 2020-21) on or before November 20, 2020, in the manner mentioned below:

Action w.e.f. November 23, 2020:

NSE BSE
The name of the defaulting companies shall be displayed on the Exchange website. The names of the defaulting companies shall be displayed on the website of BSE Limited on a separate page to highlight the Companies’ failure to pay the ALF.
 On the company’s individual get quote page on the Exchange website, a message shall be displayed saying, “Company has not paid Annual Listing Fees and is in violation of SEBI Regulations & Exchange Requirements” On the defaulting companies’ individual stock reach page on the website of the Exchange, a message shall be displayed stating that, “Company has not paid Annual Listing Fees and is in violation of SEBI Regulations & Exchange Requirements.”
 On the submission portal, whenever company logs in for submitting disclosures, a similar message would be displayed.  A similar message will also be displayed as a running ticker on the electronic portal of the Exchange, whenever the defaulting companies will log in for submitting disclosures.
 The equity shares of the company shall be moved from Normal Rolling Segment (Series: EQ) to Trade to Trade Segment (Series: BE). A notice to this effect will also be issued to all market participants. The equity shares of the defaulting companies shall be moved from Normal Trading to Trade to Trade segment (i.e. gross settlement) for which a 7 days’ notice will also be issued to all the market participants.

Key points:

  • It may be noted that the aforesaid action(s) are initial in nature and same does not preclude the Exchange from taking further stringent action(s) against the defaulting companies as notified by the Exchange from time to time.
  • Above action would also apply to Small and Medium Enterprises (SME) companies listed on the Exchange who have defaulted in paying ALF for Financial Year 2020- 21

 

The measures listed above, would not apply to the following (exclusions):

  • Public Sector Undertaking (PSU) companies
  • Companies who have been admitted by Honourable National Company Law Tribunal (NCLT)under the Insolvency and Bankruptcy Code.
  • Companies that have only Debt/Mutual Funds listed on the Exchange.
  • Tax deducted at source (TDS) would be excluded for computation of the total outstanding amount ALF.
  • In case the company is commonly listed i.e. on more than one Stock Exchange, actions such as transfer to Trade to Trade segment and reversal of these actions shall done in coordination by the Exchanges where the company is listed.
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