{"id":1971,"date":"2024-06-28T16:15:35","date_gmt":"2024-06-28T16:15:35","guid":{"rendered":"https:\/\/lawsikho.com\/blog\/?p=1971"},"modified":"2024-06-28T16:15:36","modified_gmt":"2024-06-28T16:15:36","slug":"learn-to-retrieve-information-about-a-listed-company-from-stock-exchange-website","status":"publish","type":"post","link":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/learn-to-retrieve-information-about-a-listed-company-from-stock-exchange-website\/","title":{"rendered":"Learn to retrieve information about a listed company from stock exchange website"},"content":{"rendered":"\n

Let\u2019s start with the first skill: how to retrieve information about a listed company from the stock exchange website. This is a very important skill if you are going to perform an internship at a law firm. Junior associates are also required to use this.  <\/p>\n\n\n\n

Imagine that Tesla wants to acquire Tata Motors. Such transactions frequently happen. <\/p>\n\n\n\n

Now, imagine that you have a meeting with Tesla. If it goes well, you may be engaged for the deal. <\/p>\n\n\n\n

How can you prepare? <\/p>\n\n\n\n

Tata Motors is a listed company, so you can visit the BSE or NSE website to pull out all information about them.<\/p>\n\n\n\n

But\u2026<\/p>\n\n\n\n

Where should you start? <\/p>\n\n\n\n

What information should you have? <\/strong><\/h3>\n\n\n\n

#1 – Shareholding Pattern<\/strong> – what is the shareholding of different categories of people in the company?  <\/p>\n\n\n\n

#2 – Promoter Encumbrance<\/strong> – have the owners taken a loan from banks by offering their shares in the company as security?<\/p>\n\n\n\n

#3 – Board meetings<\/strong> – This will give an idea about when the board meetings were held. Companies are required to inform the stock exchange about upcoming board meetings. <\/p>\n\n\n\n

#4 – Secretarial Compliance<\/strong> – This will show the company secretary\u2019s report on compliance<\/p>\n\n\n\n

#5 – Annual Report<\/strong> – Annual reports of listed companies provide valuable information about the activities of the company, the business model, and various other aspects. Lawyers read them for major corporate transactions.   <\/p>\n\n\n\n

#6 – Announcements<\/strong> – This section will give you an idea about recent announcements. This section is also scanned whenever any major corporate transaction is undertaken.<\/p>\n\n\n\n

For example, what if Tata Motors recently entered into a joint venture with Huawei for self-driven cars? Wouldn\u2019t you want to know that before the meeting? <\/p>\n\n\n\n

Here is a way to remember this:<\/p>\n\n\n\n

Sherpa Promoters in Board Meeting want Compliance, Reports and Announcements<\/em><\/strong><\/p>\n\n\n\n

Sherpa – Shareholding Pattern<\/p>\n\n\n\n

Promoters in – Promoter Encumbrance<\/p>\n\n\n\n

Board Meeting – Board meetings<\/p>\n\n\n\n

Compliance – Secretarial Compliance<\/p>\n\n\n\n

Reports – Annual Report<\/p>\n\n\n\n

Announcements – Announcements<\/p>\n\n\n\n

What kinds of corporate transactions require you to look up filings on the stock exchange website? <\/strong><\/h3>\n\n\n\n
    \n
  1. Any transaction where one of the companies is listed. As part of the due diligence exercise, you will need to dig out all these filings to be prepared. <\/li>\n\n\n\n
  2. This is most common when a listed company is being acquired or taking a big financial loan.  <\/li>\n\n\n\n
  3. For example, what if Tata Motors wants a loan, and the bank wants security from promoters, but its shares are already pledged to someone else?  <\/li>\n\n\n\n
  4. What if a tax demand of thousands of crores is pending? These items will later be flagged out in due diligence and provisions will be made for this in the transaction documents later.  <\/li>\n\n\n\n
  5. Without knowing such details you can\u2019t even start the initial discussions.<\/li>\n\n\n\n
  6. These details can give you valuable information in disputes also. Consider that a bank wants to recover its loans, but you realise that the company barely has any assets remaining. Is the litigation still worth it? <\/li>\n\n\n\n
  7. Maybe, you dug out two years\u2019 financial statements and found that the promoters sold these assets in one year, probably anticipating this situation. Then this information can be used to build a case for fraud. <\/li>\n\n\n\n
  8. If a company is unlisted, you will still pull out similar documents, but these will be taken from the website of the Ministry of Corporate Affairs, not from the stock exchange.    <\/li>\n<\/ol>\n\n\n\n

    When do you get to do these things? If you are a corporate lawyer, you do this work day in and day out. <\/p>\n\n\n\n

    If you ever appear in an interview for a law firm job, and you don\u2019t know these basic skills, it will be a very sad situation.<\/p>\n\n\n\n

    Even if you are an intern, and you can pull out such information quickly and present it well, it would really help to make a strong impression.<\/p>\n\n\n\n

    Do you now realise the importance of this skill? <\/p>\n\n\n\n

    I\u2019ll bring you more content on skills in my upcoming emails. So, stay tuned.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Let\u2019s start with the first skill: how to retrieve information about a listed company from the stock exchange website. This is a very important skill if you are going to…<\/p>\n","protected":false},"author":3,"featured_media":1093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13,11],"tags":[],"class_list":["post-1971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-careers","category-featured"],"_links":{"self":[{"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/posts\/1971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/comments?post=1971"}],"version-history":[{"count":1,"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/posts\/1971\/revisions"}],"predecessor-version":[{"id":1972,"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/posts\/1971\/revisions\/1972"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/media\/1093"}],"wp:attachment":[{"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/media?parent=1971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/categories?post=1971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/wp-json\/wp\/v2\/tags?post=1971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}