Understanding Listed and Unlisted Companies in CA Foundation Law

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When learning about the Listed Company and Unlisted Company in CA Foundation Law, it’s essential to grasp the basic distinctions that Rishabh Gaur Sir at IGP Institute explains in his video.

Table of Contents

Listed Company

As per Section 2(52) of the Companies Act, 2013, a listed company is defined as a company that has any of its securities listed on a recognized stock exchange, such as NSE or BSE. This means that their shares can be easily accessed and traded by the public. The term “recognized” refers to stock exchanges that are registered with SEBI, the Securities and Exchange Board of India. For example, the NSE and BSE are recognized stock exchanges, along with 26 others in India.

Unlisted Company

The concept of an unlisted company is quite straightforward. It refers to a company that does not have its securities listed on any recognized stock exchange. Consequently, the shares of an unlisted company are not as easily accessible or tradable as those of a listed company.

To put it simply, a listed company is one whose shares can be easily bought or sold on a recognized stock exchange, while an unlisted company does not have this level of accessibility.

Rishabh Gaur Sir emphasizes that understanding the listed company concept is crucial because it forms the foundation of how companies raise capital through equity, preference shares, and debentures. If you’re preparing for this topic, CA Foundation classes online can be an excellent resource to enhance your understanding with expert guidance.