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The legal framework for listing activities in the Cypriot Stock Exchange
The main regulatory framework for listing and trading activities in Cyprus is the Securities and Exchange Commission Law established in 2001, also known as the Establishment and Responsibilities Law. The Commission ensures that investors and public companies listed on the Stock Exchange in Cyprus are protected from fraud or illegalities.
The Cyprus Stock Exchange or CSE is the main stock exchange in the country and it is located in Nicosia. The Cypriot CSE was established according to the Cyprus Securities and Stock Exchange Law that regulates the development of the securities market. The Cypriot Stock Exchange began operating in 1996 and in 2006 it launched another platform in collaboration with the Athens Stock Exchange. Cypriot private and public companies may list their bonds on the Emerging Companies Market (ECM). Public companies may also list their shares on the Emerging Companies Market.
Requirements for companies to be listed on the Cyprus Stock Exchange
Both local and foreign companies in Cyprus are allowed to be listed on the CSE provided that the following conditions are fulfilled:
- the issuer must have been incorporated in accordance with the Cypriot Commercial Code or the Commercial Law of the country it is based in,
- the Articles of Association of the company must authorize the company to issue the titles to be listed on the Cypriot Stock Exchange,
- the issuer must submit audited accounts for the last three years prior to the listing application,
- the shareholder of the issuing company may control at most 70% of the general capital,
- at least 25% of the company’s share capital must be issued for the general public,
- the issued must have sufficient capital in accordance with the CSE Board requirements,
- the issuer must comply with all reporting and disclosure conditions as demanded by the CSE Board.
Securities may be listed by public offer for subscription or purchase of titles that have not yet been issued, by public offer for sale of issued titles, by private allotment or sale through the introduction of issued titles.
The Emerging Companies Market in Cyprus
The Cypriot Emerging Companies Market is a Multilateral Trading Facility (MTF) that operates in compliance with the Regulative Decisions enacted by the Stock Exchange. Listing a Cypriot company on the Emerging Companies Market may be achieved by public offering amounting over 2.5 million euros, or by private placement for institutional investors of less than 100 persons amounting less than 2.5 million euros. The Emerging Companies Market is good method for securing financing and promoting the reputation of private and public companies in Cyprus.
For details and listing procedure on the Emerging Companies Market please contact our Cypriot law firm.