Below we have summed up those questions, which most frequently arise in connection with stock exchange listing and continued trading.  If you have not received an answer to your question, please send it to 

How can I receive more information about the stock exchange listing of a company’s equities?

If you would like to receive more information about stock exchange listings, please contact the Listing and Supervisory Division by phone (+36-1-4296733) or e-mail ().

How long does the Exchange take to evaluate the application for listing?

 According to stock exchange rules, the evaluation of the application for listing shall take place within 30 days of the submission of the application (this period may be extended with the period of time allowed for submitting any missing documents). In practice, the evaluation of the application for listing normally takes place within one or two weeks of submission.

 Is there a data form which facilitates the listing procedure?

Is order to assist with the preparation of the application for listing, BSE has made a data form which applicants are not obliged to submit but which may prove to be a great help for the issuer when submitting the application for listing.

 What is the difference between listing equities in Categories “A” or “B”?

The equities may be listed in two different categories. The Exchange's categorization is designed primarily to give investors information to distinguish between listed categories based on various investment criteria. The BSE aims to ensure the simplest possible method for listing, and this is why the conditions of listing in Equity Category "B" are practically identical to the legal requirements stipulated by the CMA. The terms of listing equities in Equity Category "A" differ from the general requirements, since the BSE specifies requirements according to the size of the securities to be listed (market capitalization), ownership structure (free float, number of shareholders) and the years of operation. The share series in Equity Category "A" are more liquid in general and have a broader ownership structure. According to specified indices, the Exchange reviews the categorization of securities belonging to Category “A” every six months.      

How large should the company be to be eligible for listing on the >Stock Exchange?

The listing of equities may take place in two categories. In Category “B” there are no requirements regarding the size of the company, while in the case of an application for listing in Category “A”, the market value of the series of securities intended for listing shall exceed HUF 2.5 billion.

 Are there any listing requirements regarding the company’s business operations or financial result?

No.

  In which category can international companies apply for listing?

There isn’t a different category system for international companies. They, too, can apply for listing in Category “A” or “B”.

 Is it possible to trade in the equities of a company in a foreign currency?

Yes, it is. The trading and settlement systems allow trading in a foreign currency.

 Who passes the decisions about stock exchange listing?

The application is reviewed and evaluated by BSE’s Listing and Supervisory Division, while the decision regarding listing is passed by the Chief Executive Officer of the Exchange.

As the owner of the company, following the stock exchange listing, am I restricted in any way in selling my shares?

 

BSE’s general regulations for listing contain no such restrictions.

 What does “provisional listing” mean?

Even if the applicant is unable to fulfil all the requirements before trading starts, the series of securities become listed on BSE, that is they are added to the product list. Trading, however, may only start following the fulfilment of certain requirements, which can be met with the submission of different documents. The applicant is allowed a maximum of 60 days to fulfil the requirements. Upon a failure to meet the requirements, the CEO issues a decision to reject the listing  and de-lists the security by removing it from the product list. 

In the case of listing series of securities, the Exchange does not charge a listing fee. The annual fee payable for continued trading depends on the size of the listed series of securities (a minimum of HUF 1,250,000 and a maximum of HUF 12,650,000). The fee for continued trading shall be paid in arrears, in four quarterly instalments, but in the year of listing the issuer is exempt from paying a fee in the first two quarters of the year. Furthermore, another fee connected to stock exchange presence is the fee charged for publishing information on the Stock Exchange’s website. This fee, to be invoiced monthly, depends on the number and type of publications by the company, and, according to our experience, amounts to between HUF 10,000 and 1,200,000. 

Although BSE’s regulations contain no concrete requirements regarding the contents of issuers’ deed of foundation – therefore, it is not necessary to amend the deed of foundation -, in the case of Hungarian companies, stock exchange presence requires that their deed of foundation be “quotable”. According to BSE’s rules, issuers of equities shall publish the final amount of dividend two (2) exchange days preceding the ex-coupon day. The earliest ex-coupon day may be the third exchange day following the General Meeting resolving on the amount of dividend. (The ex-coupon day is the first exchange day when the particular securities are first traded without a dividend coupon.)  The deed of foundation of companies falling under the scope of Act IV of 2006 on companies (Companies Act) shall by all means contain certain provisions in order to ensure the above mentioned operations. For this reason, the deed of foundation shall provide differently from the provisions of the Companies Act with regard to the following sections of the law: §220 (1); § 227.

 How is the ticker code of securities determined?

The applicant may request what series of characters should mark its securities in the trading system of the Exchange (this is the so called “ticker code”), and the Exchange tries to do its best to grant this request. The ticker code is a unique alphanumeric code consisting of twelve characters (containing no special characters or ones with diacritical marks). The Exchange supports the use of ticker code which makes a clear reference to the issuer of the security and/or the security.