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Accountancy

In the company accounts chapter, there is a statement " shares of private company are not listed on stock exchange". But in reality, most of the listed companies are private in nature. Please explain.


Sibi Srinivasan

Sibi Srinivasan

CA Final

22K+

14-Aug-21 07:51

843

Answers (10)

Yes, Private Limited company can list their debt securities on SE under SEBI debt listing regulation. As per companies act pvt. Co. Can not offer their securities to public but can issue through pvt. Placement and under debt listing regulation privately placed securities can be list A private company cannot invite general public to subscribe to its shares. To do so it will first have to convert itself to a Public Limited company, then only it can think of getting itself listed on stock exchange for trading its share.


Rishi Kumar

Rishi Kumar

CA Inter

6K+

14-Aug-21 08:00

Private companies are not listed in stock exchange Private companies are usually owned by founders, the management or private investors while public companies are owned by shareholders who have a claim on company assets and profits.  Private company shares are not listed on the stock exchange and are traded privately or over the counter. For a company to be listed on the stock exchange it has to offer its shares to the public through initial public offerings IPO


Rishi Kumar

Rishi Kumar

CA Inter

6K+

14-Aug-21 08:04

Shares of private company are not listed on stock exchange Yes in reality most of the listed companies are private in nature but private companies are not listed in S.E Private companies sell their share privately.


Rishi Kumar

Rishi Kumar

CA Inter

6K+

14-Aug-21 08:07

Reliance is a private company. But it's there in SE. HOW


Thread Starter

Sibi Srinivasan

Sibi Srinivasan

CA Final

22K+

14-Aug-21 08:17

Thread Starter

Sibi Srinivasan

Reliance is a private company. But it's there in SE. HOW

ISIN : INE002A01018 Reliance industries limited is a public company


Rishi Kumar

Rishi Kumar

CA Inter

6K+

14-Aug-21 08:21

Thread Starter

Sibi Srinivasan

Reliance is a private company. But it's there in SE. HOW

Reliance Communications Limited Reliance Infrastructure Limited Reliance Power Limited Limited means public company so listed in S.E


Rishi Kumar

Rishi Kumar

CA Inter

6K+

14-Aug-21 08:23

Yes reliance is a private company and it is classified into 'company limited by share' The ownership of a company limited by shares includes the members of the general public. So it is included in stock exchange


Rishi Kumar

Rishi Kumar

CA Inter

6K+

14-Aug-21 08:32

Ok. Thank you


Thread Starter

Sibi Srinivasan

Sibi Srinivasan

CA Final

22K+

14-Aug-21 09:27

Thread Starter

Sibi Srinivasan

Ok. Thank you

Hvh


Konne Varun

Konne Varun

CA Foundation

25

15-Aug-21 09:28

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