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THEORETICAL ASPECTS OF LISTING REQUIREMENTS FOR JOINT-
STOCK COMPANIES
Narimonov Sayfullokhon Sunnatillo ugli
Basic doctoral student at Tashkent Institute of Finance, Tashkent, Uzbekistan E-
mail: Narimonov1998@gmail.com,
https://orcid.org/0000-0002-0806-0695
https://doi.org/10.5281/zenodo.10800260
Resources are becoming more scarce due to the current drastic changes
taking place in the global economy, and economic organizations are becoming
more dependent on raw commodities. Since 2017, Uzbekistan's intricate
integration procedures into the global market have become more robust, as
evidenced by the stock market's explosive growth and the continued expansion
of businesses' internationalization.
The stock market is one of the key players in all areas of international
economic relations and is regarded as a locomotive that unifies a single market of
financial sector businesses [1].
One of the most crucial economic areas for Uzbekistan to expand is the stock
market, whose primary focus should be on ways to boost the amount of money
that is transferred between companies.
In our nation, the growth of the stock market receives particular attention,
which further elevates its importance within the economy and governs its
operations. The Strategy for the Further Development of the Republic of
Uzbekistan specifically focuses on the growth of the stock market, with its 27th
goal being "In order to increase financial resources in the economy, increase the
turnover of the stock market from 200 million US dollars to 7 billion US dollars in
the next 5 years" [2].
Researchers U. Yuldasheva, S. Narimonov, and Sh. Bolibekov examined the
tax bases of businesses that satisfy the criteria to be listed on a stock exchange
[3].
According to B. Ochilov's research, the state's medium- and long-term
investment strategy should be centered on addressing the issue of "maintaining
high and stable rates of economic growth, it is necessary to form a stable and
competitive model of the country's economy, in which most of the assets of the
banking system are in the hands of private investors"[4].
Because of the relatively small sample size of components under research
(five points), statistical analysis of time series methods cannot be used in this
work; also, some aspects of the processes under study can only be characterized
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using qualitative indicators. As a result, this study conducted a significant change
analysis as well as a comparison analysis of certain parameters.
Listing is the process of putting securities on the stock exchange and
provides issuers with control over their access to the stock market. Listing
regulations specify how securities issued by joint stock firms are listed on the
stock exchange.
This method must be followed by every firm that wishes to become an
issuer on the exchange, including those who do an initial public offering. During
the listing process, a special commission assesses the firm based on a variety of
indications before deciding whether to release its securities on the stock market.
This method grants access to the exchange only to individuals who satisfy
the following criteria:
financial indicators,
liquidity level,
risks.
Listings have a lot of distinguishing characteristics. First and foremost, only
marketable assets are eligible for these stock exchange listing processes.
Furthermore, the listing method is primarily intended to safeguard investors
from various sorts of fraud by disclosing publicly available, verifiable information.
In a number of countries, listing provides the foundation for certain tax benefits
for issuers. Furthermore, it is simpler for these issuers to win the trust of banks
and other credit institutions when the need for loans arises. [5].
Companies issue securities by listing them on a stock market. This will boost
the trust of current investors while also providing a chance to sell securities to a
new, larger audience. Raising capital through the sale of securities, as an alternate
means of financing, helps you to expand your firm faster. As demand for assets
rises, so does capitalization. Furthermore, firms may earn tax breaks for
organizational transfers or loans. Listing also helps to safeguard the interests of
investors, especially minority investors:
- Reduces trading in fraudulent firms' securities.
- Protects against damages from issuer insolvency.
Companies need to be listed for various reasons, including access to
investors (domestic and international), increased investor confidence (from level
III to level I), increased financing options (shares and bonds), capitalization
growth, and free circulation.
Listing is the process of issuing securities on a stock market, allowing the
firm to attract investment. A specified degree of listing on a specific exchange is
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comparable to a rating. The better the grade, the more affordable and simple it is
to attract investment into the organization.
Listing is a costly procedure that involves both one-time and continuing
charges. Maintaining non-disclosure status has an impact on all of a firm's
operational procedures, including making it more difficult for a private
corporation to comply with its exempt requirements.
The listing procedure offers investors the following benefits:
- Exchange quality mark indicating compliance with trading platform and
regulator standards;
- The existence of a share in a quotation list aids in risk assessment;
- Listing simplifies investment portfolios and prioritizes minority
shareholder rights.
Furthermore, a listing might reveal information about a security's liquidity
and possible demand from institutional investors.
Anyone can become a shareholder of the firm by acquiring a share of its
stock. Only independent bodies, such as stock exchanges and rating agencies, may
provide investors with information about the business's prospects and hazards.
When acquiring a securities from the first quote list, an investor should expect a
higher level of liquidity than from the second list. Being on the quotation list
indicates that the firm has (or does not have) a strategic stance regarding minority
shareholders, who were acquired during the placement process.
There are two sorts of listing requirements: primary and secondary.
Primary securities are the first to be listed on the stock exchange. Secondary - also
traded on another trading site.
A special listing is used for securities that are only traded in limited circles
or issued for specific reasons.
The listing level lets you know what standards the issuer has met. If a firm
went through a challenging selection procedure while attaining listing criteria, it
will appear more reputable to investors.
The procedure for accessing the stock exchange of joint stock corporations
comprises three stages:
The issuer files an application and signs an agreement to undertake the
evaluation.
Submits materials as required by the Commission.
Issuer is awaiting the final findings and will then attend the selection
committee's meeting. If the issuer satisfies the conditions, its securities will be
added to the quotation list.
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They will be in the first and second tiers. A quote sheet is a listing of
securities traded on a stock market. If the issuer does not fulfill the conditions, the
securities will be placed on the pre-listing list. Transactions with assets on this list
must be conducted outside of the trading system. This implies that the exchange
absolves itself of responsibility for trading securities.
The stock exchange quote commission is a div in charge of the circulation
of securities on the stock market, determining their rate, registering the rate, and
reporting on it in exchange bulletins. Although each firm is unique, the
fundamental requirements for access control remain the same.
The list of stocks and bonds differs significantly, but in both cases, the
exchange places a high value on the organization's size and financial performance,
the openness of its records and operations, its duration of existence, and
compliance with regulations.
Issuers must comply with basic standards such as issuing securities in
compliance with local laws, completely disclosing reports, providing financial loss
information, meeting operational conditions, and issuing a specific amount of
shares.
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